KUSCCO gets temporary reprieve as High Court halts auction over Sh108.8million debt
The Kenya Union of Savings and Credit Co-operative Organisation (KUSCCO) has secured temporary relief after the High Court issued orders stopping the auction of its offices over a disputed Sh108.8million claim.
In a ruling delivered under a certificate of urgency, the court granted KUSCCO a 30-day stay of execution, effectively suspending any auction or enforcement action against the organisation’s property.
Through its lawyer, Cecil Miller, KUSCCO moved to court arguing that the intended auction would cause irreparable harm and disrupt the operations of the national umbrella body for SACCOs. The application was filed on January 27, 2026, and was immediately certified as urgent by the court.
The case, Kenya Union of Savings and Credit Co-operative Organisation Limited versus PEA Ruiru Co-operative Savings and Credit Society Limited, arises from a dispute over Sh108.8 million, which had prompted steps to auction KUSCCO’s offices to recover the amount.
In his directions, High Court Judge Linus P. Kassan ordered that execution be stayed for 30 days from the date of the ruling. The court further directed that service of the application be effected within two days, after which both parties will have seven days to file their responses and written submissions.
Justice Kassan also scheduled the matter for an inter partes hearing on February 12, 2026, when both sides will argue their case before the court determines whether the orders should be extended or lifted.
The ruling offers KUSCCO temporary breathing space as it challenges the enforcement measures, even as the court prepares to hear the substantive arguments in the dispute.
KUSCCO plays a central role in Kenya’s cooperative movement, representing and supporting SACCOs across the country. The outcome of the case is expected to be closely watched by players in the cooperative sector, given the potential implications on debt recovery and governance within SACCO institutions.
