High Court strikes out KUSCCO liquidation petition, says co-operative societies governed by separate law
The High Court has struck out a petition seeking to liquidate KUSCCO under the Insolvency Act, ruling that co-operative societies are governed by the Co-operative Societies Act
The High Court in Nairobi recently dismissed a petition seeking to liquidate the Kenya Union of Savings and Credit Co-operatives Limited (KUSCCO) under the Insolvency Act. The court held that co-operative societies are governed by a separate legal framework, as outlined by the Co-operative Societies Act. Justice Rhoda Rutto ruled that the petition lacked jurisdiction, as KUSCCO was registered under the Co-operative Societies Act, not the Companies Act.
The judge pointed out that while KUSCCO is considered a "body corporate", this does not make it a "company" for the purposes of the Insolvency Act. The court found that RUPSA Regulated NWDT Sacco Society Limited's arguments about KUSCCO's financial difficulties could not confer jurisdiction under the Insolvency Act. The ruling upholds a preliminary objection by KUSCCO and strikes out the petition dated March 17, 2026, for lack of jurisdiction.
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