Court Rules on Liquidation of KUSSCO to Recover SACCO Funds

A court has determined the next step in a legal dispute involving KUSCCO after a SACCO moved to have the union liquidated.

The High Court in Nairobi has struck out a petition by a savings and credit cooperative organisation (SACCO) seeking to liquidate the Kenya Union of Savings and Credit Co-operatives Limited (KUSCCO) over an alleged unpaid debt of about Ksh108.85 million.

Justice Rhoda Rutto ruled that the petition had been filed under the wrong legal framework because KUSCCO is registered as a co-operative society rather than a company under the Companies Act.

The ruling, delivered on September 28, upheld KUSCCO’s preliminary objection and brought the petition filed on March 17 to an end.

The judge rejected the argument that KUSCCO’s status as a body corporate automatically made it a company for purposes of the Insolvency Act.

She also ruled that the use of the word “Limited” in KUSCCO’s name did not change its legal status or bring it under the Companies Act.

Source: Kenyans.co.ke