NAIROBI, Kenya, Aug 6 – The government has ruled out the possibility of reversing the liquidation of Moi University Savings and Credit Society (MUSCO), dealing a blow to efforts by members and local leaders to save the troubled institution.
Appearing before the Senate, Cooperative and MSME Development Cabinet Secretary Wycliffe Oparanya said the law does not provide for the reinstatement of a cooperative society once its registration has been cancelled.
“In the current legal framework, once a Sacco’s registration is revoked and no appeal is made within 30 days, liquidation proceeds as stipulated,” Oparanya told the Senate in response to a question by Nominated Senator Margaret Kamar.
He added that even Kenya’s Insolvency Act does not allow for reinstating a cancelled registration—a position that aligns with international best practice.
MUSCO’s licence was revoked in 2018 after it fell into debt exceeding Sh1 billion. The Sacco was formed in 1988 by Moi University staff to help improve their financial wellbeing, but mismanagement and non-performing loans led to its collapse.
Despite strong opposition from over 3,000 members and political lobbying to have it revived, the liquidation has remained in force.
“The delay in resolving this matter was due to the need to carefully consider a legally sound path forward within the law,” Oparanya said.
However, the CS noted that the Ministry is developing a framework to engage MUSCO members and other stakeholders to find solutions regarding their welfare and the Sacco’s future.
“We’ve also put in place measures to improve the integrity and pace of the liquidation process,” he added. “These include appointing a new liquidator, fast-tracking audits for past financial years, and enhancing oversight mechanisms.”
