NAIROBI, Kenya, Sept 2 – A challenge has been filed by Allan Mulama Advocates at the High Court in Nairobi following the gazettement of the liquidation of the Kenya Union of Savings and Credit Co-operative Union Limited (KUSCCO) this week.
In her ruling, Lady Justice Rhoda Rutto certified as urgent the matter filed by RUPSA NWDT Sacco Society Limited against KUSCCO and directed the petitioners to serve the respondents, liquidators and any other person likely to be affected by the order today.
“THAT the parties file their responses if they so wish,” Rutto said.
“THAT the parties appear before Court on 8th September 2026 for further directions on hearing of the Application.”
On Monday, the Commissioner for Co-operative Development, David K. Obonyo, gazetted the liquidation of KUSCCO following the loss of billions of shillings attributed to internal mismanagement.
The move followed a meeting with members of the umbrella body who approved the liquidation amid concerns over liquidity challenges.
Liquidation happens when a company’s assets are taken over to recover debts owed to creditors, eventually leading to the closure of the firm, according to the Business Registration Service.
A forensic investigation conducted on KUSCCO by PwC about two years ago uncovered an estimated financial hole of between Sh12 billion and Sh13.3 billion at the union, which was linked to ghost loans, falsified commissions and what the audit described as executive mismanagement.
Consequently, the financial losses forced several SACCOs to write off millions of shillings invested in KUSCCO.
For instance, Stima DT SACCO wrote off Sh108 million, while Balozi SACCO wrote off Sh437.5 million and Afa SACCO wrote off Sh361.6 million, among others.
