- KUSCCO shareholders approve full liquidation as debts hit Ksh 17 billion against Ksh 5.4 billion in assets.
- New national Sacco association approved to take over advocacy, training and research roles.
- Commissioner David Obonyo to oversee asset recovery and payouts to Saccos and depositors.
KUSCCO shareholders have approved a structured liquidation after liabilities topped Ksh 17 billion, and endorsed a new national Sacco body to take over its role.
Shareholders of the Kenya Union of Savings and Credit Cooperatives (KUSCCO) Limited have approved the structured liquidation of the Union, following a review of its financial position.
The resolution was adopted at a Special General Meeting (SGM) convened by the Commissioner for Cooperative Development, David Obonyo held on August 28, 2026, at All Saints’ Cathedral in Nairobi.
Shareholders heard that KUSCCO’s asset base stands at approximately Ksh 5.4 billion. However, its liabilities exceed Ksh 17 billion, leaving a significant funding gap.
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Consequently, shareholders resolved that the Union undergo an orderly liquidation process. This will be carried out in accordance with applicable legal and regulatory requirements.
Process aims to protect Sacco deposits
The liquidation is intended to safeguard KUSCCO’s remaining assets. Importantly, it also seeks to protect the interests of Saccos, depositors and other stakeholders who relied on the Union’s services.
The Commissioner was mandated to oversee the entire process. His responsibilities include securing and realising KUSCCO’s remaining assets, as well as settling outstanding liabilities and liquidation costs.
Thereafter, he will facilitate the equitable distribution of any residual proceeds, in line with the law.
New national association to take over key functions
Beyond liquidation, shareholders also approved the establishment of a new national association. This body will advance Sacco advocacy, education and training, research and consultancy services going forward.
The new institution is expected to ensure continuity of these essential services. Additionally, it aims to strengthen the representation of Kenya’s Sacco sector at a national level.
The move marks a pivotal moment for the sector, closing one chapter of KUSCCO’s troubled financial history while opening another focused on rebuilding institutional trust.
By Benedict Aoya
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