Court Petition Filed to Wind Up SACCO Giant Over Ksh 12.5B Deficit

A major financial storm is brewing around the Kenya Union of Savings and Credit Co-operatives (KUSCCO) after a petition sought to wind up the institution over a reported Ksh 12.5 billion deficit.

According to a gazette notice issued under the Insolvency Act, petitioners moved to the High Court of Kenya in Nairobi on March 17, 2026.

“A petition was presented to the High Court of Kenya at Nairobi, seeking an order for the compulsory winding-up of the Company,” the notice stated.

RUPSA Regulated Non-Withdrawable Deposit SACCO Society Limited filed the case, arguing that the company can no longer meet its financial obligations.

The gazette strengthens that claim, stating that the insolvency of the company rests on three independent grounds.

Further, a forensic audit highlights the scale of the crisis.

“Total liabilities of Kshs. 17,700,000,000 against total assets of Kshs. 5,200,000,000, a net deficit of Kshs. 12,500,000,000,” the notice revealed.

This sharp imbalance places the SACCO at the centre of one of the sector’s biggest financial concerns.

Court Issues Restrictive Orders

Meanwhile, the High Court moved swiftly to protect remaining assets. The notice stated that the Company, its directors, officers, agents and servants are restrained from disposing off, selling, transferring, encumbering any asset of the Company.

In addition, the court warned that any payment or transfer received from the Company after 17th March, 2026 may be required to restore such value to the insolvent estate.

This directive aims to prevent further financial erosion before the case is determined.

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Creditors Put on Notice

At the same time, the notice called on creditors and depositors to act without delay.

“Any party holding deposits, investment certificates, loans or any other financial exposure with the Company must take note… creditors should immediately quantify and document all claims,” it stated.

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Moreover, the gazette cautioned that any payment or transfer received from the Company after 17th March, 2026 is void by operation of section 429 and requires immediate legal advice.

This puts anyone who recently transacted with the SACCO on high alert.

Next Court Date Set

The matter will return to court on May 27, 2026 for further directions. Until then, stakeholders face growing uncertainty as the case unfolds, with the potential to significantly shake Kenya’s cooperative financial sector.

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KUSCCO LTD on March, 19 when they appeared before the National Treasury to present SACCO sector proposals for the 2026/27 Budget. PHOTO/ KUSCCO X