Four arrested over multi-billion KUSSCO scandal

Four people have been arrested in connection with the multi-billion-shilling irregularity scandal at the Kenya Union of Savings and Credit Co-operatives (KUSCCO).

Three of the suspects; Jackline Pauline Atieno Omolo, George Ochola Owino, and Mercy Njeru, were arrested within Nairobi County, the National Police Service (NPS) said on Thursday.

“[They] now face several charges including conspiracy to defraud… stealing by directors or officers of companies… and making a false document…,” NPS said in a post on X.

The fourth suspect identified as George Magutu Mwangi was arrested in Nyeri County.

Cabinet Secretary for Cooperatives and MSMEs Wycliffe Oparanya on Tuesday handed over a forensic audit report of the case to the police for further investigation and legal action.

The audit, conducted by PricewaterhouseCoopers (PwC), uncovered massive mismanagement, including Ksh.3.7 billion in non-performing loans, overstated profits of Ksh.797.9 million over six years, and irregular commission payments totaling Ksh.2.7 billion.