Qona SACCO Under Probe Over KSh 135m Exposure in Troubled KUSCCO

By Jackson OKOTH

Qona DT SACCO, formerly Safaricom SACCO, which has an exposure of KSh 134.7m invested in insolvent Kenya Union of Savings and Credit Cooperatives(KUSCCO), is under investigations by the Commissioner of Co-operatives.

While details from the probe are still scantly, the reputation damage that the Society could face is significant, given the strong brand name of Safaricom-where it draws most of its membership, has in the market.

In September 2025, members of Qona SACCO requested for a probe into the Society’s financial affairs, on allegations of mismanagement and irregularities within the SACCO. The probe by the Commissioner is examining the SACCO’s Management, Governance and Financial operations, to ensure transparency and protect members’ interest

Qona’s investments in collapsed KUSCCO is made up of KSh 104m in interest earning deposits and shares worth KSh 30.7m. The Society has since made a loss provision or impairment charge of KSh 26.16m in its 2024 financial statements.

The Board has provisioned for this loss, which may be unrecoverable, for the next four years, contrary to International Financial Reporting Standard(IFRS) rules. Efforts to obtain comments from the Qona CEO Mr Joseph Njoroge, were unsuccessful as he was unable to return the calls.

Sources reveal that the Qona probe is likely to address allegations made by members on misuse of funds, irregular transactions and poor financial reporting. There are also reports of potential breaches of the SACCO’s bylaws, inadequate oversight and poor decision-making.

Apart from Qona, the other top Deposit-Taking SACCOs with huge exposure to the KUSCCO Heist include IG SACCO (KSh 588.7m), Mhasibu SACCO (KSh 480.6m) after KUSCCO defaulted on a matured fixed deposit maturity request, Balozi SACCO (KSh 437.5m), Kimisitu SACCO (KSh 353.95m), Kenya National Police DT SACCO (KSh 108m deposit and 6.97% ownership in KUSCCO with 1,629,312 shares, Tembo SACCO (KSh 115.83m), Kenpipe SACCO (KSh 149.18m), Stima SACCO (KSh 108m) and AMREF SACCO (KSh 90m).

The financially-crippled KUSCCO is indebted to the tune of KSh 13.3 Billion, the loss attributed to mismanagement and fraudulent activities.

A caretaker team appointed to oversee repayment of debts owed by KUSCCO is headed by Mr David Mategwa, the Board Chairman of Kenya National Police DT SACCO.

The team has taken several measures to clean up the KUSCCO mess including a target to recover part of the cash from former managers within three years, including KSh 8.8 billion in assets to be recovered.

Mategwa’s team also intends to sell off non-revenue assets, including 32 vehicles and the Union’s 60% stake in KUSCCO Mutual Assurance Limited; sell off loan book to willing financial institutions; negotiate with creditors and SACCOs that lost money; and auction of over 50 properties belonging to those officials who embezzled KUSCCO money.

KUSCCO auctioned properties worth a total of KSh 1.7 billion spread across Nairobi, Kiambu, Machakos, Kisumu, Homa Bay, Mombasa and Kakamega.

Properties on sale in Nairobi included an apartment in Nyayo Estate, a Mansionette in Eastlands, Three Storey dwelling block in Umoja with multiple renting units, an apartment in Kirichwa gardens, Kileleshwa and a rental property in Ruiru that is still under construction.

The auction dates were June 5^th, 10^th and 13^th 2025.