Moi University Sacco Society (MUSCO) could be emerging out of its financial and regulatory problems.
This follows a decision by the Cooperatives Cabinet Secretary Wycliffe Oparanya to lift a liquidation order that had been placed on the troubled Moi University Sacco Society Limited.
“I have directed the Commissioner for Cooperative Development to remove the liquidation order and reinstate the certificate of registration for Moi University Sacco Society Limited, marking a critical step in restoring trust, protecting members ‘savings and reaffirming the values of Kenya’s cooperative movement, “said CS Oparanya on his social media handle.
He said the decision follows extensive consultations with Moi University Sacco Society members, recommendations from the Senate and a task force appointed by the Ministry.
An interim board of five members has been appointed to oversee MUSCCO operations pending the election on a substantive Board and Supervisory Committee within the prescribed timelines.
He said the reinstatement of MUSCCO is not an endorsement of past failures. It is a second chance that is anchored on strict expectations and around governance, compliance and ethical leadership. He warned that where culpability is established, accountability will be enforced without hesitation.
Moi University SACCO: Where the rains begun
Problems for Moi University Sacco hit headwinds when, through 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.
Founded in 1985, Moi University SACCO is 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.
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, Moi University Sacco 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.
Moi University Sacco Society Plan was rejected by the regulator
In response, Moi University Sacco 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.
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.
Moi University SACCO received a relief when CS Oparanya came to the scene. The CS appointed a taskforce comprising Chairperson Joshua Choge, and members Eric Kipkoech Korir, Stephen Kibungei, Edward Mutuaruhiu, Javel Murira, Anthony Mkabane, Benjamin K. Rop, Ms. Pamela Moraa, Ereu Totona, Zephaniah Rutto, Malinson Kiprotich Koech and David Ruto.
According to a gazette notice No 16776, the appointed taskforce job has been to ascertain the status of membership of the MUSCCO (In Liquidation), and the foregone potential membership since liquidation; establish the financial status of MUSCCO, including the status of assets and liabilities of the Society; undertake a review of the financial and non-financial performance indicators of MUSCO prior to appointment of a liquidator and establish the investment trends, portfolio, and compliance challenges faced by MUSCCO that led to the appointment of a liquidator, and the probabilities of any resolutions.
The taskforce was also to look at performance of the Society’s loan book; determine the status of MUSCCO Towers in terms of ownership, financing construction operations, and outstanding obligations).
The team was also to determine impact of continued liquidation of MUSCCO on its members, clients, ancillary services and will also assess the potential social and economic benefits of the Society’s revival in reference to Bottom Up Economic Transformation Agenda (BETA) in promoting Financial Inclusion.
The task force was given the job of drawing up a revival plan for MUSCCO including redrawing the Society’s vision, mission, governance, operational efficiency and sustainability.
The Taskforce has been in the office since 7th December 2023.
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