Kenya: New Kuscco Liquidator Appointed Despite Court Stay

What the report says

Kenya’s Commissioner for Co-operative Development has named Waithaka Ngaruiya of Waithaka and Associates as the new liquidator for the Kenya Union of Savings and Credit Co-operatives (KUSCCO), according to Capital FM as republished by AllAfrica. The appointment was made through a special Gazette notice dated Sept. 23 and is intended to last for up to one year.

The move comes even though the High Court had earlier issued temporary orders halting the State-appointed liquidation team from taking control of KUSCCO’s assets. The article says the court action followed a petition by RUPSA Regulated NWDT SACCO Society Limited, which argued that the liquidation powers conflicted with existing court protections over the union’s property.

KUSCCO’s members voted to dissolve the union on Aug. 28 after an audit indicated liabilities of about Sh17 billion against assets of roughly Sh5.4 billion. On Aug. 31, Commissioner David Obonyo cancelled the union’s registration and ordered liquidation. The new appointee has been instructed to secure KUSCCO’s property, books and documents needed to complete the process.

The development matters because KUSCCO plays a major role in Kenya’s savings-and-credit cooperative sector, and the liquidation could affect member SACCOs and creditors. More broadly, the case highlights the legal and financial complications that can arise when a cooperative is placed under winding-up proceedings while court challenges are still active.