Moi University Sacco, now under liquidation, could rise again from the ashes if a rescue plan being drawn up by the state results in its revival.
- •When liquidators descended on Moi University Sacco six years ago, the giant savings and credit was technically insolvent, had defaulted on a KSh 200 million loan to construct its head offices.
- •It was unable to refund money to members who had left the Society, and was unable to provide life insurance to deceased members.
- •Moi University Sacco also failed to meet all the statutory financial and liquidity ratios as set out by the Sacco Society Regulatory Authority(SASRA), prompting the liquidation process.
Moi University Sacco members have in the past held demonstrations in Eldoret, protesting against the sale of Musco towers, the Society’s HQ, by Co-operative Bank of Kenya. The lender’s unpaid construction loan had accumulated to over KSh 600 million against Moi University Sacco Tower which is valued at KSh 350 million.
In 2018, Moi University Sacco had its license revoked and was later on placed under liquidation the following year. 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 liquidation has yet to be completed years later, even as the State appoints a taskforce to draw up a MUSCO rescue plan.
- •Members of this taskforce include Joshua Choge (Chairman), Eric Kipkoech Korir, Stephen Kibungei, and 12 others.
- • The joint Secretaries are Elsama Ndegwa and Esther Cherubet Mutai.
According to a gazette notice No 16776, this appointed taskforce will ascertain the status of membership of the MUSCCO (In Liquidation), and the foregone potential membership since the liquidation process began.
The taskforce will also establish the financial status of MUSCCO, including its assets and liabilities; undertake a review of the financial and non-financial performance indicators of MUSCO before the 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 will also look at the performance of the Society’s loan book; and determine the status of MUSCCO Towers in terms of ownership, financing construction operations, and outstanding obligations.
- •The team will also determine the impact of the continued liquidation of MUSCCO on its members, clients, and ancillary services and will also assess the potential social and economic benefits of the Society’s revival.
- •It will remain in office for three months ending March 7th, 2024 with possible extensions.
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