The Cooperative Tribunal has cleared RUPSA Sacco to auction movable properties belonging to the Kenya Union of Savings and Credit Cooperative Limited (KUSCCO) in order to recover deposits and interests amounting to Ksh 108.8 million.
RUPSA Sacco formerly PCEA RUIRU Sacco secured the auction orders after KUSCCO failed to pay up the said amount as directed by the Tribunal in its ruling on April 28, 2025 and failing to honour a seven day notice to pay up the pending amount..
According to court submissions, RUPSA Sacco invested Kshs.88,951,375 in fixed deposits with an interest of 9.2pc per annum in KUSCCO between 2018 and July 2023.
KUSCCO which has been undergoing financial turmoil since early last year was found to have breached the investment contract with the Sacco after it failed to honour withdrawal of Ksh 60 million and retention of Ksh 25 million for investment as requested by RUPSA Sacco.
RUPSA Sacco says it is now acting on the Tribunal ‘s orders issued on January 19, 2026 to attach and sell by auction KUSCCO’s movable assets such as motor vehicles, furniture and fittings, office equipment, as well as consumables in order to recover the outstanding amount.
According RUPSA Sacco Acting Chief Executive Officer Julius Mwangi plans are at advanced stages to effect the order, unless KUSCCO pays up the expeditiously pay the monies in full.
“Our only objective is recovery of our members’ funds. After exhausting diplomatic engagement, we sought
redress from the Tribunal and obtained a favorable judgment. Given the legal implications of the matter, we
expected the outstanding debt to be accorded appropriate priority by KUSCCO,” said Mbugua.
KUSCCO termed liquidity constraints as the reason behind failure to honour the contractual agreement with the sacco. Since early last year, the former sacco umbrella body has been undergoing financial constraints after audit revealed mismanagement of at least Ksh 12 billion by former board and management.
“When the Tribunal issued the auction order this month, we submitted it to KUSCCO informing them of the
seven-day notice period, which has now lapsed. Once again, they have chosen not to honour the judgement,
leaving us with no option but to explore other options to recover our money,” added Mbugua.
The auction gives RUPSA Sacco authority to recover among others, Ksh 88.95 million in deposits, Ksh 6.09 million in interest on investment and Ksh 13.3 million in interest from later investments.
