Ukaguzi Sacco reported Sh47.03 million in loan defaults in 2025, while recovery of a separate Sh50 million investment in KUSCCO Limited remained uncertain.

In a report presented to members at its 53rd General Meeting on March 28, 2026, the Sacco’s Supervisory Committee said Sh3.27 million of the defaulted loans had been classified as losses after remaining unpaid for more than a year.

Another Sh13.95 million was classified as doubtful or substandard, with payments overdue by between 91 and 360 days, while Sh29.81 million was overdue by between 31 and 90 days.

The committee warned that Ukash loans had recorded high default rates and recommended tighter credit scoring and eligibility requirements to reduce losses.

“As at 31st December 2025, the total amount defaulted was Ksh.47,031,164,” the report stated.

Despite the defaults, the Sacco’s loan book grew by 6.68 percent to Sh3.02 billion, while loans issued during the year rose to Sh1.69 billion from Sh1.68 billion in 2024.

The report also raised concerns over the Sh50 million invested in KUSCCO in 2023. Ukaguzi received Sh756,705 in 2025, representing 1.43 percent of the expected amount, as the board continued discussions with KUSCCO management over the outstanding balance.

Separately, the Sacco reported Sh98.85 million in unpaid member contributions that employers had not remitted by December 31, 2025.

Ukaguzi’s operating income rose to Sh510.90 million in 2025, exceeding its budget of Sh388.45 million by 31.5 percent. However, expenditure reached Sh398.36 million, above the budget of Sh375.37 million.

Membership increased to 2,455 from 2,376 in 2024.

The committee called for stronger risk management, improved oversight and a review of the Sacco’s tax exposure, including possible excise duty and withholding tax liabilities.