The Kenya Union of Savings and Credit Cooperatives (KUSCCO) scandal has left a trail of shattered reputations and financial ruin, with one of the most notable figures being Mercy Muthoni Njeru, a former head of the radio project at KUSCCO.
Once a respected professional, Njeru’s involvement in the Ksh13.3 billion fraud has tarnished her name and raised serious questions about accountability within the cooperative sector.
Her alleged role in the scandal has not only damaged her career but also eroded trust in the institutions meant to safeguard the savings of ordinary Kenyans.
Njeru, alongside other key suspects, was arrested on February 13, 2025, and faces multiple charges, including conspiracy to defraud and theft by company directors.
According to the forensic audit conducted by PricewaterhouseCoopers (PwC), Njeru and her co-accused allegedly siphoned Ksh82.8 million from KUSCCO, which was reportedly used to purchase property in Nairobi.
This revelation has painted her as a central figure in the scandal, with her actions highlighting how individuals entrusted with managing members’ savings can abuse their positions for personal gain.
The audit uncovered a web of financial mismanagement, including falsified financial statements, unauthorized cash transfers, and the use of a deceased auditor’s signature to approve fraudulent transactions. Njeru’s alleged participation in these activities has severely damaged her professional reputation.
As someone who was once seen as a leader within the organization, her fall from grace has been dramatic. The court has summoned her to face charges alongside other suspects, including former chairman George Magutu and finance manager George Owino, further cementing her involvement in the scandal.
The impact of Njeru’s alleged actions extends beyond her personal reputation. The KUSCCO scandal has left the institution insolvent, with Ksh12.5 billion unaccounted for and 247 SACCOs at risk of losing their deposits.
This has caused widespread panic among members who relied on KUSCCO to safeguard their savings. The betrayal of trust by individuals like Njeru has shaken the cooperative sector, which is meant to empower ordinary Kenyans through savings and credit.
As the legal proceedings continue, Njeru’s reputation remains synonymous with fraud and betrayal. Her alleged involvement in the scandal serves as a cautionary tale about the need for stronger oversight and accountability in Kenya’s financial institutions.
The fallout from this scandal has not only ruined her career but also left a lasting impact on the cooperative movement, highlighting the devastating consequences of greed and mismanagement.
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