The Kenya Union of Savings and Credit Co-operatives (KUSCCO) has issued a notice directing borrowers to continue repaying their loans and creditors to submit claims for money owed to them.
In a notice dated October 8, 2026, liquidator Waithaka Ngaruiya told borrowers to continue making their monthly installments as required under their existing loan agreements.
Borrowers have also been instructed to make payments using the bank details provided in their agreements with KUSCCO.
“All debtors of Kenya Union of Savings and Credit Co-operatives (KUSCCO) are advised to continue paying their respective monthly installments, as they fall due through the bank details as provided in the agreements between the debtors and KUSCCO,” the notice stated.
Borrowers who need clarification on their repayment arrangements have been advised to contact the liquidator through the telephone number 0111027200 or email addresses [email protected] and [email protected].
KUSCCO Creditors Asked to File Proof of Debt
In a separate notice issued on the same date, Ngaruiya directed creditors to submit full details of the money owed to them by filing proof of debt.
Creditors can send their claims through KUSCCO’s registered head office at KUSCCO Centre, Kilimanjaro Avenue, Upperhill, Nairobi, or email the documents to [email protected] and [email protected].
The liquidator warned that creditors who fail to prove their debts risk missing out on distributions made before their claims are established.
“Pursuant to the provisions of the Insolvency Act, Waithaka Ngaruiya was appointed as the liquidator of Kenya Union of Savings and Credit Co-operatives Union Limited (KUSCCO) under Gazette Notice No. 15270 dated September 23, 2026,” the notice reads.
“Creditors of KUSCCO are required to send full particulars of their claims by filing their Proof of Debt against the Co-operative with the undersigned Liquidator via the registered Head Office of the Co-operative or alternatively via email on [email protected] and [email protected]; in default thereof, they may be excluded from the benefit of any distribution made before such debts are proved.”
Also Read: Policyholders Face Fresh Two-Month Wait as Three Insurers Freeze Payments
KUSCCO Liquidation Follows KSh16 Billion in Claims and Mounting Losses
The notice comes after KUSCCO shareholders voted in August to liquidate the organiZation, bringing the troubled SACCO umbrella body to the brink of extinction after years of financial mismanagement left it unable to meet billions of shillings in obligations.
“The institution is insolvent and cannot even meet its financial obligations. Therefore, it requires drastic measures to save shareholders’ hard-earned assets,” said Commissioner for Co-operatives David Obonyo.
The meeting, attended by representatives of about 250 SACCOs, exposed the bitterness surrounding the collapse.
Members questioned why more had not been done to recover money they said previous management had squandered.
Government officials countered that the former board had been dissolved and some former executives taken to court.
KUSCCO’s legal team said the organisation was facing 291 cases as of August 21, with SACCOs seeking more than KSh16 billion in deposits and accumulated interest. Its board said it recovered only KSh77 million from debtors between 2024 and 2026.
The union was created to serve the SACCO movement as an umbrella body, providing financial and other services to member societies.
An audit cited at the meeting found negative retained earnings of KSh16.8 billion and roughly KSh13 billion in recorded expenses with no supporting evidence.
KUSCCO said it paid member SACCOs KSh369.3 million over the two years to December 2025, using proceeds from asset sales and debt recoveries. However, that sum is a fraction of the billions being claimed in court.
Also Read: Kenyans Borrow Nearly Ksh1 Trillion From SACCOs, Here’s What They Used the Money For
RUPSA Moves to Recover KSh108.8 Million
RUPSA-regulated NWDT SACCO has been pursuing KSh108.8 million after a court verdict required KUSCCO to repay its deposits, interest, and costs.
The dispute dates to deposits that RUPSA placed with KUSCCO from 2018 and sought to withdraw as the union’s liquidity deteriorated.
KUSCCO did not pay, prompting further enforcement proceedings and an order allowing the attachment of its movable property.
Instead of serving as a financial and support hub for member societies, KUSCCO has become the subject of court cases and recovery efforts, with SACCOs seeking to reclaim money they had entrusted to the organization.
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