Twist as sacco moves to block State-picked Kuscco liquidators
Rupsa Sacco raises questions over the independence of the liquidation process.
The government has officially cancelled the registration of Kenya Union of Savings and Credit Co-operatives (KUSCCO) and initiated its liquidation process due to severe liquidity challenges. This decision was announced in a Kenya Gazette notice signed by Commissioner for Co-operative Development, David K. Obonyo. KUSCCO's failure to meet its financial obligations and its members' decision to dissolve the organisation under the Co-operative Societies Act led to this outcome.
The liquidation process will be overseen by three officials appointed by the State Department for Co-operatives. KUSCCO faced significant financial difficulties, with estimated assets of about Ksh5.4 billion against liabilities exceeding Ksh17 billion, leaving a potential gap of Ksh11.6 billion. This led to 291 court cases against the union, with claims totaling over Ksh16 billion.
The financial irregularities and mismanagement were uncovered during various audits and investigations, including a 2023 inspection that found KUSCCO's loan book overstated by more than Ksh7.6 billion. The liquidation process will focus on identifying and recovering assets, while prioritizing the distribution of remaining funds among creditors.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- KUSCCO liquidation: Govt cancels registration as SACCO liabilities hit Ksh17B peopledaily.digital
