Kenyan court blocks auction of Kuscco's assets in Sh108.8m debt dispute
The High Court has temporarily halted the auction of assets belonging to the Kenya Union of Savings and Credit Cooperatives Limited (Kuscco). Justice Linus Kassan granted a 30-day stay of execution after auctioneers moved to seize vehicles and office equipment over an unpaid debt of Sh108.8 million.
The ruling follows a legal challenge by Kuscco, which argued that the tribunal's earlier decision failed to account for its ongoing liquidity crisis and the wider impact on the cooperative sector.
The dispute centres on fixed deposits that RUPSA Sacco (formerly PCEA Ruiru Sacco) placed with Kuscco between 2018 and January 2024. Kuscco was unable to repay the funds due to severe financial difficulties, prompting RUPSA Sacco to initiate legal action. A tribunal ruled against Kuscco in December, paving the way for auctioneers to recover the debt.
On January 21, 2026, auctioneers issued a proclamation for Kuscco's assets, including vehicles and office furniture worth hundreds of thousands of shillings. The attachment was set for January 28, but Kuscco's lawyer, Cecil Miller, filed an urgent application to block the sale. Miller argued that the tribunal had not properly considered Kuscco's liquidity crisis or the potential fallout for the entire cooperative sector.
Kuscco's financial troubles first surfaced in late 2023, leading to a series of emergency measures. In December 2023, the organisation secured a KSh 5 billion loan from the Central Bank of Kenya. It also restructured internal loans, launched a KSh 2 billion member relief fund, and partnered with the Kenya Deposit Insurance Corporation to strengthen deposit guarantees for its 5 million members.
Despite these efforts, the debt to RUPSA Sacco remained unresolved. The High Court's intervention now gives Kuscco a month-long reprieve while it appeals the December ruling.
The temporary injunction prevents auctioneers from selling Kuscco's assets until further notice. The cooperative will use the 30-day period to pursue its appeal against the December ruling. The outcome will determine whether the seized vehicles and equipment remain under Kuscco's control or are liquidated to cover the Sh108.8 million debt.
