NAIROBI — Afya Sacco has officially written off Sh361.6 million lost in collapsed investments tied to the troubled Kenya Union of Savings and Credit Co-operatives (KUSCCO), dealing one of the biggest financial blows yet linked to the ongoing scandal shaking Kenya’s cooperative sector.
The loss, detailed in the sacco’s newly published financial report for the year ending December 2024, reflects money that is no longer expected to be recovered from what were once seen as secure investment schemes.
Buried in the section on receivables, the figure speaks volumes. It’s not just a line on a balance sheet it marks a sobering reality for thousands of members who trusted their savings were safe.
“This loss has had a significant impact on our books,” an official close to Afya Sacco’s board said on condition of anonymity. “It’s not just about numbers. It’s about trust.”
Afya Sacco’s financial expenses jumped sharply following the write-off. The cooperative’s total expenses reached Sh1.35 billion in 2024, up from Sh1.17 billion the year before.
The KUSCCO scandal has rippled across the cooperative world. Once a pillar of the sector, KUSCCO is now under intense scrutiny over what insiders describe as years of unchecked mismanagement and questionable investment strategies. Dozens of saccos some small, others among Kenya’s biggest have reported significant exposure.
Afya Sacco is among the hardest hit. But even with the weight of the loss, the sacco still posted Sh1.51 billion in net interest and operating income for 2024, a slight increase from the previous year.
That resilience is being tested. The sacco reported a steep drop in interest income from loans and advances, falling to Sh1.6 billion from Sh2.3 billion in 2023 a decline that analysts say points to deeper issues with lending or collection in the wake of the scandal.
At the same time, Afya Sacco has tightened its belt. Personnel costs came in at Sh511 million, while administrative expenses stood at Sh139 million. Governance and marketing spending were slashed governance down to Sh150 million from Sh225 million, and marketing cut to Sh13 million from Sh50 million.
Still, many members are demanding answers.
“I joined Afya Sacco because I believed my savings were protected,” said Angela Mwende, a Nairobi-based nurse and longtime member. “Now we’re being told hundreds of millions are gone, and there’s no clear accountability. That’s hard to accept.”
In response to the growing unrest, Co-operatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya recently formed a special committee to investigate the matter. The task force has been asked to drive reforms, recover lost assets, and restore faith in Kenya’s vast cooperative network.
“We must protect members’ funds and strengthen governance across the board,” Oparanya told reporters in Nairobi last week. “This isn’t just a financial issue it’s a question of public trust.”
Sector experts say it will take more than a few rule changes to clean up the mess.
“The cooperative sector needs a serious reckoning,” said Mary Atieno, an economist who specialises in financial institutions. “Stronger oversight, better risk management, and transparency are not optional they are urgent.”
As for Afya Sacco, its latest financial report reads like a tale of two realities: a cooperative trying to stay afloat, and a membership reckoning with hard truths.
The coming months will test whether Kenya’s sacco movement can weather the storm or whether deeper reforms are still to come.
