The financial and regulatory troubles facing Moi University Sacco Society (MUSCO) have intensified following the government’s decision to appoint two new joint liquidators to oversee its ongoing wind-up process.
In a Gazette Notice dated September 16, 2025, the Commissioner for Co-operative Development, David K. Obonyo, named Kennedy A. Emali and Druscillah Jebet Cherogony as joint liquidators, replacing the earlier sole mandate held by Emali.
“Whereas by an extension and variation order dated 29th May, 2025, I appointed Kennedy A. Emali (Principal Cooperative Auditor) to be liquidator for Moi University Sacco Society (in liquidation) Limited-CS/4319 for a period not exceeding one (1) year, And Whereas I am of the opinion that the appointment should be varied,” read the notice in part.
Now therefore, I appoint Kennedy A. Emali (Principal Cooperative Auditor- Nairobi Headquarters) and Druscillah Jebet Cherogony (Principal Cooperative Officer-Uasin Gishu) to act as joint liquidators in the matter of the said Co-operative Society, effective from the date hereof.”
Moi University Sacco Society Placed Under Joint Liquidation
Founded in 1985, MUSCO was a well-established deposit-taking Sacco serving over 3,000 members from Moi University, University of Eldoret, Maasai Mara University, University of Kabianga, and Bomet University College, among others.
It was licensed to operate as a deposit-taking Sacco in 2014 by the Sacco Society Regulatory Authority(SASRA).
Soon after, it invested in a landmark property, MUSCO Towers—a 0.114-acre leasehold plot in Eldoret Municipality valued at Ksh 650 million as of 2017.
Of this, KSh 200 million was charged to the Co-operative Bank of Kenya to help finance the project.
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Liquidity Crisis and Regulatory Crackdown
However, soon after completing MUSCO Towers, the Sacco began to experience severe liquidity problems, worsened by Moi University’s failure to remit member deductions from June 2015 onwards.
Despite this, MUSCO showed signs of recovery by 2017, as per audited accounts submitted to SASRA.
The Sacco claimed it was on the path to stabilization and had issued school fees loans worth Ksh 30 million to members without external borrowing.
Nevertheless, SASRA issued a notice on March 7, 2018, indicating its intention to revoke the Sacco’s license, citing Section 27(1) of the Sacco Societies Act.
In response, MUSCO submitted a detailed plan, including the proposed sale of MUSCO Towers via public tender on June 28, 2018, aimed at clearing the bank loan and funding operations.
SASRA did not respond and proceeded to revoke the license on June 27, 2018—just a day before the planned sale, a move many viewed as suspect.
The then Commissioner for Co-operative Development, Mary Mungai, cancelled the registration of MUSCO and appointed two liquidators to take custody of the Society for a year.
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In November 2019, the then Acting Commissioner for Co-operatives Development, Geoffrey Njang’ombe, moved in with liquidators into Moi University SACCO to recover cash belonging to members of this society.
The Saccos’ appeals to the Cabinet Secretary for intervention were ignored, forcing them to seek judicial review through the Eldoret High Court in Miscellaneous Civil Application No. 66 of 2018, which was dismissed on procedural grounds.
MUSCO was advised to exhaust administrative channels first.
Even after appealing to the then Cabinet Secretary on July 18, 2018, MUSCO received no hearing or response.
A further attempt at mediation through the Inter-Governmental Technical Relations Committee (IGTRC) resulted in a recommendation that stakeholders—including SASRA, liquidators, and the County Government—collaborate to salvage the Sacco.
Despite this, MUSCO alleged that liquidators withheld key financial documents, making it impossible for the County Government to assess or offer financial support.
This, according to MUSCO, is evidence that liquidation was pursued as a first, rather than a last resort.
After the stalemate, MUSCO filed another court application on October 30, 2019, seeking a temporary injunction to block the auction of MUSCO Towers, which was scheduled for January 31, 2020. D
However, auctioneers proceeded with issuing another sale notice dated March 3, 2020.
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