Cooperatives CS Simon Chelugui has challenged the interim board of Kenya Union of Savings and Credit Cooperative (KUSCCO) to develop and execute a robust recovery strategy for the body.
Speaking during the inauguration of the board on May 7, 2024, Chelugui said his ministry stands ready to support the new team in their efforts.
“We will not hesitate to hold accountable those who betray the trust placed in them,” he said.
Chelugui announced that his ministry will appoint a technical committee comprised of select CEOs to support the board to undertake its mandate effectively.
The chair of the board is David Mategwa while the vice chair is Jennifer Mburu.
The board members are Mathew Ruto, Joel Gacgari, Osman Kotolwa, Robert Njue, Francis Mureithi, Julius Nzioki, Peter Ngugi, William Mbogo and Phillip Rirei
On Monday, Chelugui dismissed the board of directors of KUSCCO- the umbrella body of savings and credit cooperatives (SACCOs) in Kenya- over alleged financial impropriety.
It followed a preliminary examination of the union's financial records conducted by the Grant Thornton audit firm, which uncovered deficiencies in resource management.
Addressing the new team, the CS asked the members to ensure the reconstruction of the union's financial records to reflect the true state of affairs.
“This will form the basis of the accurate and acceptable opening balances of the union's records,” he said.
Chelugui further asked the interim board to oversee the completion and implementation of the ongoing statutory audit.
“Amend the union by-laws to align the structure and mandate of the union to support the growth and development of the sacco sub-sector,” he urged.
The CS further as the board to facilitate the election of delegates and the board by ensuring a transparent and fair process across the country.
“I cannot overstate the gravity of your appointment which demands unwavering commitment to principles of corporate governance, integrity, and honesty in all your endeavours,” he added.
He stressed that the board’s role is not merely administrative but also strategic leadership.
He said the board should provide direction, oversight, and, when necessary, cause correction.
“Your tenure, though limited to one year, carries with it the expectation of restoring confidence in the union among its affiliates. To this end, I urge you to develop a clear roadmap based on your terms of reference, prioritising actions that will realign the union with its intended trajectory,” he stated.
He added that establishing effective board committees will be essential for efficient governance and decision-making.
