The auction of KUSCCO assets is now official. The Cooperative Tribunal has cleared the sale of Kenya Union of Savings and Credit Cooperative Limited property to recover Ksh108.8 million owed to RUPSA SACCO. The ruling follows years of ignored withdrawal requests, broken promises, and open defiance of court orders.
Auctioneers can seize vehicles, office equipment, and other movable assets unless KUSCCO pays immediately. The decision exposes deep failures inside a once-powerful cooperative body and raises hard questions about governance, accountability, and member protection across the SACCO sector.
Auction of KUSCCO Assets exposes years of defiance and mismanagement
The Cooperative Tribunal ruled on April 28, 2025, in favour of RUPSA SACCO, formerly PCEA Ruiru SACCO. The court confirmed Ksh88.95 million as principal, plus accrued interest, costs, and fees. The total claim now stands at Ksh108.8 million. The Tribunal declined to award additional damages. It cited KUSCCO’s liquidity collapse and internal mismanagement as contributing factors.
The ruling did not offer sympathy. It offered enforcement. The Tribunal issued a warrant of attachment that authorises auctioneers to seize movable assets. These include vehicles, office equipment, and other recoverable property. The order allows immediate action if KUSCCO fails to settle the full amount.
RUPSA SACCO said it pursued the auction of KUSCCO assets after repeated non-compliance. The SACCO argued that KUSCCO ignored clear court directives while paying other creditors. The Tribunal agreed that patience had run out.
KUSCCO operates from offices along Kilimanjaro Road in Upper Hill, Nairobi. The body once stood as a pillar of the cooperative movement. Today, it faces shrinking cash flows, audits, and investigations that point to years of weak controls and poor oversight.
How unpaid deposits triggered the Auction of KUSCCO Assets
RUPSA SACCO invested fixed deposits with KUSCCO starting in 2018. The goal was simple. The SACCO wanted stable income for its 8,000 members. By July 2023, RUPSA SACCO had deposited Ksh88,951,375.
In April 2023, RUPSA SACCO instructed KUSCCO to release Ksh60 million and roll over the balance. KUSCCO ignored the request. It blamed liquidity challenges. The explanation did not change the facts.
The deposits matured in January 2024. KUSCCO still did not refund the money. The union acknowledged demand letters. It promised to pay. It failed to act.
RUPSA SACCO then tried dialogue. It sent more letters. It held meetings. Nothing moved. In March 2024, the SACCO filed a case at the Cooperative Tribunal.
The Tribunal reviewed the evidence. It confirmed the debt. It found no justification for continued delay. The ruling paved the way for the auction of KUSCCO assets as a last resort to recover members’ money.
Why enforcement now matters for the wider SACCO sector
KUSCCO has paid other SACCOs in recent months. Reports show payments of Ksh369.3 million over two years. The union raised cash by selling non-core assets and improving loan recoveries. Yet it continued to withhold RUPSA SACCO’s funds.
That pattern angered creditors. It also shaped the Tribunal’s stance. Selective repayment undermined trust and violated the spirit of the judgment.
RUPSA SACCO’s acting CEO, Julius Mwangi, said the SACCO exhausted diplomacy. He confirmed that the seven-day notice period for the auction had lapsed. KUSCCO still did not pay. “They chose not to honour the judgment,” he said. “We have no option but to recover the funds through other legal means.”
The auction of KUSCCO assets sends a warning across the sector. Court orders carry consequences. Delays invite enforcement. Members’ deposits demand protection.
The crisis at KUSCCO runs deeper than one case. Investigations and audits have shaken the union for nearly two years. In November last year, the government announced a formal inquiry. Members demanded answers on governance, financial management, and internal controls.
The Sacco Societies Regulatory Authority has also weighed in. SASRA blamed legal and policy gaps for the losses at KUSCCO. The regulator said members lost Ksh14 billion. It warned that earlier intervention could have stopped the damage nearly three years ago.
SASRA reported that policy delays created loopholes. Those gaps allowed KUSCCO to operate without sufficient checks. The fallout hit 201 SACCOs. They lost about 10 percent of core capital. The damage spread across the cooperative ecosystem.
The Tribunal’s approval of the auction of KUSCCO assets marks a turning point. Enforcement replaces excuses. Accountability replaces promises. For SACCO members, the case offers a hard lesson. Due diligence matters. Regulation must move faster. Courts will act when patience ends.
If the auction proceeds, it will not just recover money. It will reset expectations. Cooperative bodies must respect the law, protect deposits, and answer to their members—or face the hammer.
