- Cooperatives and MSMEs Development Cabinet Secretary (CS) Wycliffe Oparanya broke his silence on the MUSCO liquidation
- The CS explained the liquidation process after Jubilee nominated senator Margaret Kamar posed a question
- Oparanya emphasised that the liquidation process was irreversible due to legal constraints under the Cooperative Societies Act
zaia news.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.
Cooperatives and MSMEs Development Cabinet Secretary (CS) Wycliffe Oparanya has confirmed plans to liquidate the Moi University Savings and Credit Cooperative Society (MUSCO).
Oparanya told senators on Wednesday, August 6, that his ministry has developed a plan to consult MUSCO members and other interested parties about the institution's future.
Uasin Gishu nominated senator Margaret Kamar had asked the CS to outline the steps the government is taking to ensure that the taskforce's recommendations, which were established by Gazette Notice No. 16776 of December 8, 2023, to examine the state of MUSCO (in liquidation), are fully implemented.
"The ministry is fully committed to making sure that the Cooperative Societies Act and other relevant legal frameworks serve as the foundation for all interventions, including audits, stakeholder consultations, and policy discussions, with a primary focus on protecting the rights and interests of MUSCO members and stakeholders," Oparanya stated.
Will a liquidation committee be appointed?
Oparanya said a liquidation committee had been appointed by the liquidator to assist in carrying out the liquidation process.
The county government of Uasin Gishu voiced concerns about the way the liquidation process was handled in the MUSCO case.
The CS noted that the concerns were addressed by the Intergovernmental Relations Technical Committee, which organised several consultative meetings to address the issues.
What was Kamar's request?
Senator Kamar called for openness and the safeguarding of members' funds during the CS's meeting with the senators.
"MUSCO members are entitled to clarity and savings protection throughout this process," she said.
Oparanya responded by revealing that his ministry has hired private companies to audit MUSCO's financial records up to 2021.
According to him, the current cooperative legal framework allows an appeal against the commissioner's cancellation order to be filed with the CS within 30 days, with an additional right of appeal to the High Court.
It does not, however, allow for the reinstatement of registration for a cooperative society whose registration has been cancelled.
Why did Moi University sack employees?
In May, the public institution issued redundancy letters to hundreds of workers, citing overstaffing.
The institution observed that employees were forced to return to the main campus after the chartering of many campuses.
Over 800 staff were affected in the process, handing a big blow to locals who worked as casual workers.
How did KUSCCO lose KSh 1.3b?
In other news, the Kenya Union of Savings and Credit Co-operatives (KUSCCO) requested assistance from the government to identify 150 dormant SACCOs that took out loans totalling KSh 1.33 billion.
The organisation disclosed some SACCOs that took out loans and then vanished without a trace.
According to the records, 35 out of the 150 SACCOs obtained loans from KUSCCO without making deposits.