Ukaguzi Sacco disclosed Sh47.03 million in loan defaults during 2025, according to its Supervisory Committee report presented at the organisation's 53rd General Meeting on 28 March 2026. The cooperative also flagged uncertainty over recovery of a separate Sh50 million investment in KUSCCO Limited.
Of the total defaults, Sh3.27 million was classified as losses after remaining unpaid for more than a year. A further Sh13.95 million was classified as doubtful or substandard, with arrears of between 91 and 360 days, while Sh29.81 million was overdue by between 31 and 90 days.
The Supervisory Committee warned that Ukash loans had experienced high default rates and recommended stricter credit scoring and tighter eligibility requirements to mitigate future losses.