RUPSA SACCO has obtained court orders to auction movable assets belonging to the Kenya Union of Savings and Credit Cooperative Limited (KUSCCO) to recover Sh108.8 million in unrefunded deposits, accusing the umbrella body of defying a binding Co-operative Tribunal ruling while settling debts owed to other Saccos.
In a press release issued on January 27, 2026, RUPSA SACCO, formerly known as PCEA Ruiru SACCO, said it had taken the unprecedented step after KUSCCO repeatedly failed to comply with a Tribunal judgment ordering it to refund the Sacco’s deposits and accrued interest.
The Tribunal ruled on April 28, 2025, that KUSCCO must pay RUPSA SACCO Sh108.8 million, covering the principal investment, interest, taxed costs, interest on principal and collection fees.
RUPSA SACCO said it has invested with KUSCCO since 2018 through fixed deposits, in addition to paying annual membership fees and contributions, with the aim of generating “passive and consistent income” for its more than 8,000 members.
By July 2023, the Sacco had deposited Sh88,951,375. However, instructions issued in April 2023 to withdraw Sh60 million and roll over the balance were ignored, with KUSCCO citing liquidity challenges.
“Upon maturity of the investment in January 2024, KUSCCO still did not refund the monies, despite acknowledging receipt of several demand letters from us,” the statement said.
RUPSA SACCO noted that while KUSCCO continued to plead financial difficulties, it repeatedly assured the Sacco that it would settle the claim in full.
After failed attempts to resolve the matter amicably, RUPSA SACCO moved to the Co-operative Tribunal in March 2024.
In its April 2025 judgment, the Tribunal found that KUSCCO had breached its contractual obligations and ordered it to pay the outstanding amount with interest. Despite this, RUPSA says KUSCCO has not honoured the directive.
The Sacco expressed concern that KUSCCO has publicly stated it paid other member Saccos a total of Sh369.3 million in the two years to December 2025, funds reportedly raised through the sale of non-core assets and enhanced loan recoveries.
“Noting the self-reported change in financial fortunes, and backed by the Tribunal’s judgment in our favor, RUPSA SACCO fails to understand why KUSCCO has deliberately opted not to honour our outstanding and legitimate claim,” the statement said.
On January 19, 2026, the Tribunal granted orders allowing RUPSA SACCO’s auctioneers to attach and sell KUSCCO’s movable assets, including motor vehicles, office furniture, equipment and consumables. Acting Chief Executive Officer Julius Mbugua Mwangi said plans to enforce the order were at an advanced stage.
“Our only objective is recovery of our members’ funds,” Mbugua said. “When the Tribunal issued the auction order this month, we submitted it to KUSCCO informing them of the seven-day notice period, which has now lapsed. Once again, they have chosen not to honour the judgement, leaving us with no option but to explore other options to recover our money.”
