KUSCCO assets set for auction as Ksh.108.8M debt standoff escalates

RUPSA Sacco has moved to auction the movable assets of the Kenya Union of Savings and Credit Cooperative Limited (KUSCCO) in a bid to recover Ksh.108.8 million in deposits and accrued interest, after the apex cooperative body allegedly failed to comply with court orders directing it to settle the debt.

In a press release dated January 27, 2026, the Sacco said the decision followed prolonged efforts to recover members’ funds, including multiple demand letters and legal action, which it says were met with continued non-compliance by KUSCCO.

The debt arises from fixed deposit investments that RUPSA Sacco made with KUSCCO beginning in 2018, aimed at generating stable returns for its more than 8,000 members.

According to RUPSA Sacco, by July 2023 it had deposited Ksh.88.95 million with KUSCCO. In April 2023, the Sacco issued instructions to withdraw Ksh.60 million while allowing the balance to roll over, but the request was not honoured.

KUSCCO reportedly cited liquidity challenges, a position it maintained even after the investment matured in January 2024. Despite acknowledging receipt of several demand notices, KUSCCO did not refund the funds.

Frustrated by what it termed a lack of sincerity and professionalism, RUPSA escalated the matter to the Co-operative Tribunal in March 2024.

In a judgment delivered on April 28, 2025, the Tribunal ruled in favour of RUPSA Sacco, finding that KUSCCO had breached its contractual obligations.

The ruling ordered KUSCCO to refund the principal amount together with interest, taxed costs, and additional interest at tribunal rates, bringing the total payable to Ksh.108.8 million.

However, RUPSA Sacco says the order has not been honoured to date. This is despite KUSCCO issuing public updates indicating it had paid other member saccos a total of Ksh.369.3 million in the two years to December 2025, funds it said were raised through the sale of non-core assets and improved loan recoveries. RUPSA Sacco questioned why, in light of these disclosures, its claim had not been prioritised.

On January 19, 2026, the Tribunal granted RUPSA Sacco permission to attach and auction KUSCCO’s movable assets, including motor vehicles, office equipment, furniture, fittings and consumables, to recover the outstanding amount.

The Sacco says it has already served KUSCCO with the required seven-day notice, which has since lapsed without payment.

RUPSA Sacco Acting Chief Executive Officer Julius Mbugua Mwangi said the organisation’s sole objective is to safeguard members’ savings.

“After exhausting diplomatic engagement, we sought redress from the Tribunal and obtained a favourable judgment. Given the legal implications, we expected the debt to be accorded appropriate priority,” he said.