KUSCCO ACCOUNTANTS IN POLICE DRAGNET OVER BOOK TAMPERING TO HIDE BILLIONS HEIST

Detectives from Capitol Hill police station have launched a dramatic crackdown on Kenya Union of Savings and Credit Co-operatives Ltd (Kuscco), grilling ten accountants suspected of orchestrating a sophisticated cover-up to conceal financial improprieties that plunged the institution into a staggering Sh13.3 billion hole.

The interrogations, which sources say will culminate in multiple arrests within days, follow explosive allegations that rogue staff members linked to the previous administration have been systematically destroying evidence and tampering with crucial financial records to hide what investigators now describe as one of the biggest financial frauds in Kenya’s cooperative movement history.

Lawyer Cecil Miller, representing the embattled Kuscco board, filed a damning complaint with the Directorate of Criminal Investigations alleging criminal destruction of documents, theft, and violations of the Data Protection Act.

The legal salvo has sent shockwaves through the cooperative sector, with whispers of a widening dragnet that could ensnare more individuals as investigators peel back layers of financial misconduct.

“The arrests and ongoing investigation signal intensified efforts by the new management and board to recover the lost billions and ensure accountability for those responsible,” Miller declared, adding that the current leadership is determined to restore confidence in an institution that serves 247 Saccos representing thousands of Kenyan savers whose deposits now hang in the balance.

At the heart of the scandal lies a devastating forensic audit by global accounting giant PricewaterhouseCoopers (PwC), which laid bare how former managers rendered Kuscco technically insolvent to the tune of Sh12.5 billion, with total losses ballooning to Sh13.3 billion.

The report has become the smoking gun in what appears to be a carefully orchestrated scheme to loot the cooperative union while covering tracks through document destruction and record manipulation.

The plot has thickened further with revelations that critical financial documents relating to transactions worth a mind-boggling Sh5.318 billion have vanished into thin air.

According to Miller and Company Advocates, repeated requests for proof of payment and payment vouchers dating back to January 2025 have hit a brick wall, with the union claiming the original records were either deliberately destroyed or spirited away during the chaotic management transition.

In a desperate bid to piece together the financial puzzle, Kuscco has now turned to Kenya’s banking sector, formally requesting nine major lenders including Co-operative Bank, Absa Bank, Gulf African Bank, NCBA, Consolidated Bank, Sidian Bank, Family Bank, Kenya Commercial Bank, and National Bank to provide copies of the missing records.

The banks are believed to hold duplicate transaction records that could prove crucial in reconstructing the paper trail and nailing those responsible for the alleged heist.

Investigators are treating the case as a complex white-collar crime involving possible collusion between accounting staff and former senior management.

Sources close to the probe indicate that digital forensics experts have been brought in to recover deleted electronic records, while handwriting analysts are examining documents for signs of alteration or forgery.

The scandal has sent panic rippling through the cooperative movement, with member Saccos demanding urgent answers about the safety of their deposits.

Industry insiders warn that the crisis threatens to undermine public confidence in the sector, which serves as a financial lifeline for millions of Kenyans locked out of traditional banking.

Those arrested are expected to face a raft of charges including theft, fraudulent destruction of documents, concealment of documents linked to financial losses, conspiracy to defraud, and breaches of the Data Protection Act.

Legal experts suggest the charges could carry lengthy prison sentences if convictions are secured.

The current Kuscco board and management have vowed to pursue every legal avenue to recover the missing billions and restore the institution’s financial health.

However, with key evidence apparently destroyed and suspects allegedly working to obstruct investigations, the road to recovery appears long and treacherous.

As detectives continue their interrogations at Capitol Hill police station, the question on everyone’s lips is how such massive financial impropriety went undetected for so long, and whether the missing billions can ever be recovered.

For now, the fate of thousands of cooperative members hangs in the balance as investigators race against time to unravel what may prove to be one of Kenya’s most brazen financial frauds.​​​​​​​​​​​​​​​​