High Court Blocks KUSCCO Liquidation, Saving 2 Million SACCO Members

Members of savings and credit cooperatives across Kenya woke up to cautiously good news on Wednesday: the High Court in Nairobi has issued conservatory orders blocking the liquidation of the Kenya Union of Savings and Credit Co-operatives, the umbrella body that links nearly 2 million SACCO members nationwide.

The ruling halts a process that had been set in motion by the Sacco Societies Regulatory Authority (SASRA), which moved to wind up KUSCCO after an audit revealed a Ksh12 billion discrepancy in its books — money that should have been held in member deposits and investments but which appeared to have been misappropriated over several years.

The court found that SASRA had not followed due process in the liquidation order and that the rights of member SACCOs — who are the ultimate beneficial owners of KUSCCO's assets — had not been adequately considered. Justice Maureen Onyango directed SASRA to file a detailed response within 14 days explaining the regulatory basis for the winding-up decision.

For the SACCOs that invested in KUSCCO's deposit products — attracted by interest rates that were slightly above market — the legal reprieve is a temporary relief rather than a solution. Many have already written off their KUSCCO holdings as unrecoverable, and the reputational damage to the SACCO movement more broadly has been significant.

Cooperatives CS Simon Oparanya said the government remains committed to accountability. "The money must be accounted for. Whether through the courts or through the regulatory process, those responsible will face consequences," he said. KUSCCO's former leadership, several of whom have been questioned by the DCI, deny wrongdoing.