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KUSCCO Centre, Nairobi.[Courtesy]
A secretive Sh17.7 billion restructuring plan has put KUSCCO under fresh legal scrutiny days before the High Court is expected to rule on an insolvency petition threatening the SACCO union’s future.
The proposed restructuring, which includes the creation of a new entity known as the Kenya Federation of Savings and Credit Cooperatives (KEFESCO) Ltd has triggered an urgent application by its creditors led by RUPSA Regulated NWDT SACCO Society Limited seeking court intervention.
RUPSA wants the High Court to determine whether KUSCCO can reorganise its membership and affairs while preservation orders issued in March remain in force arguing that the changes could affect members’ rights and could frustrate Sh6.1 billion claims before the insolvency dispute is determined.
