Ukaguzi Sacco disclosed a total of KSh47.03 million in loan defaults for 2025 and highlighted uncertainty over a KSh50 million investment in KUSCCO Limited when it presented its 53rd General Meeting report on March 28, 2026.
The Sacco’s Supervisory Committee said that KSh3.27 million of the defaulted loans had been written off as losses after remaining unpaid for more than a year, while KSh13.95 million were classed as doubtful or substandard with arrears of 91 to 360 days, and KSh29.81 million were overdue by 31 to 90 days.
The committee warned that Ukash loans had recorded high default rates and urged the adoption of stricter credit-scoring and eligibility criteria to curb future losses.
“As at 31st December 2025, the total amount defaulted was KSh47,031,164,” the report stated.
Despite the defaults, the loan portfolio expanded by 6.68 per cent to KSh3.02 billion, and new loans issued during the year increased slightly to KSh1.69 billion from KSh1.68 billion in 2024.
The Sacco also raised concerns about the KSh50 million it invested in KUSCCO in 2023, noting that only KSh756,705 – 1.43 per cent of the expected return – had been received in 2025 while discussions with KUSCCO management continued.
In addition, the Sacco reported that member contributions amounting to KSh98.85 million had not been remitted by employers as of 31st December 2025.
Operating income for 2025 rose to KSh510.90 million, surpassing the budgeted KSh388.45 million by 31.5 per cent, whereas expenditure reached KSh398.36 million, exceeding the budgeted KSh375.37 million.
Membership grew to 2,455 from 2,376 in the previous year, and the committee called for stronger risk management, enhanced oversight and a review of the Sacco’s tax exposure, including possible excise duty and withholding tax liabilities.
