- KUSCCO borrowers have been directed to continue servicing their loans as the liquidation process proceeds.
- The liquidator has invited creditors to submit formal claims for outstanding debts.
- Creditors who delay verifying their claims risk missing out on payments made before verification.
Borrowers of the struggling Kenya Union of Savings and Credit Co-operatives (KUSCCO) must keep paying their loans on schedule, its liquidator says.
Waithaka Ngaruiya issued the directive in a notice dated October 8, 2026. He told borrowers to carry on with their monthly instalments, paying through the bank accounts named in their original loan agreements. For now, nothing changes in how or where they remit the money.
Alongside that instruction, Ngaruiya has opened the door for those who are owed money. In a second notice, he invited KUSCCO’s creditors to come forward and state what they are due. To do so, they must file formal proof of debt claims.
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There is a catch for anyone who delays. According to the liquidator, creditors who do not establish their claims in good time risk being shut out of any payout made before their debts are verified. Moving quickly could therefore make a real difference to who gets paid, and when.
Ngaruiya took charge of the process after his appointment through Gazette Notice No. 15270, dated September 23, 2026. He is acting under the Insolvency Act and the Co-operative Societies Act, which together guide how the union’s affairs are wound up.
By Benedict Aoya
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