The government has moved to wind up the Kenya Union of Savings and Credit Co-operatives (KUSCCO) after cancelling its registration.
The decision was published in a Gazette Notice signed on August 31, 2026, with the Commissioner for Co-operative Development saying the union had failed to meet its objectives because of liquidity problems.
KUSCCO members had earlier agreed to dissolve the organisation under the Co-operative Societies Act, setting the stage for the cancellation of its registration.
The Commissioner then cancelled the registration under Section 62(1)(c) of the Act and ordered that the union be liquidated.
Three officials from the State Department for Co-operatives have been appointed to handle the liquidation.
They will take charge of KUSCCO’s property, books, records and other documents needed to complete the process. Their appointment will run for a maximum of one year.
The move follows years of financial and management problems at KUSCCO, including a Ksh13.3 billion financial scandal that raised concerns about members’ savings and investments.
The government had earlier taken control of the organisation’s operations as it tried to stabilise it and oversee reforms.
In July, the government also announced plans to change KUSCCO into a federation as part of wider efforts to improve how SACCOs are run.
Under the proposed arrangement, KUSCCO would stop operating as a financial services provider and instead concentrate on supporting SACCOs and promoting better governance in the sector.
Those changes were linked to proposed amendments under the Cooperative Societies Bill, which seeks to strengthen accountability and oversight in the co-operative movement.
The latest Gazette Notice now formally puts KUSCCO under liquidation.
The liquidators will be expected to take control of the union’s assets and records as they begin the process of winding it up.
The Co-operative Societies Act gives the Commissioner for Co-operative Development powers to cancel the registration of a co-operative society and oversee its liquidation where the required conditions have been met.
The liquidation is likely to be closely watched by SACCO members and other parties with money or interests tied to KUSCCO as the government moves to determine the organisation’s remaining assets and obligations.