Auditor General Alexis Kamuhire has recommended that the Rwanda Cooperative Agency (RCA) put in place various mechanisms to help recover Rwf8.1 billion that was embezzled between 2022 and 2025. ALSO READ: Gicumbi: Six cooperative leaders arrested over embezzlement “Between 2022 and 2023, 105 cooperatives were involved in the misappropriation of Rwf7.7 billion. In 2025, 46 cooperatives were involved in the misappropriation of Rwf455 million. During an audit carried out in December 2025, only Rwf10 million had been recovered,” he stated. ALSO READ: Could asset declaration end embezzlement among cooperatives? This, he said, shows that there is embezzlement within cooperatives and that “the recovered funds are very small compared to the amounts that were misappropriated.” “There are very few staff at district and local levels supporting cooperatives,” he said. MP Deogratias Bizimana Minani said there is a need for an investigation into why efforts to recover the money have been slow. New rules A new law introduced in 2024 has brought changes expected to improve the performance of cooperatives and the incomes of their members. The law seeks to address the unregulated remuneration of members of cooperative executive committees, which currently encourages embezzlement. Based on audit and inspection reports carried out in accordance with the provisions of this law, or on faults committed, the National Agency (RCA) provisionally suspends cooperative leaders and employees due to mismanagement of cooperative property. In such cases, the National Agency immediately convenes the General Assembly to take decisions and appropriate measures. ALSO READ: Govt launches probe to uncover ‘ghost and dormant’ cooperatives Where all members of cooperative organs are suspended in the general interest of members, the National Agency immediately appoints a member or employee of the cooperative to oversee and manage its interests and assets, if replacements have not yet been appointed. The National Agency also blacklists all leaders and employees convicted of mismanaging cooperative assets, making them ineligible to serve in any cooperative as leaders or managers. A cooperative must establish a permanent education and training fund. A cooperative is not permitted to distribute dividends from this fund to its members, except in the event of its dissolution. It was also found that some cooperative leaders have been exploiting cooperatives for personal gain. “This law provides sanctions against such individuals, which were not provided for in the previous law,” Minani said. For instance, any member or members of the Board of Directors, an employee, or a member of a cooperative who fraudulently uses cooperative property for personal gain or for purposes other than those for which it was intended; sells or damages cooperative property fraudulently; or commits an offence, is liable upon conviction to imprisonment of not less than two years but not more than five years, and a fine of not less than Rwf500,000 but not more than Rwf5 million. Also, a member of a cooperative who pledges his or her share as security commits an offence under the law. Upon conviction, he or she is liable to imprisonment of not less than six months but not more than two years, and a fine equivalent to two to three times the value of the pledged share. It should be noted that there are more than 10,000 cooperatives in Rwanda with over 5.2 million members and share capital exceeding Rwf45 billion, according to RCA.
