KUSCCO Secures Injunction to Block Asset Auction in Sh108.8M Legal Tussle

The High Court in Nairobi has granted a temporary stay of execution to the Kenya Union of Savings and Credit Co-operative Organisation (KUSCCO), halting the imminent auction of its corporate offices.

The order, issued by High Court Judge Linus P. Kassan, provides the union with a 30-day reprieve from enforcement actions related to a Sh108.8 million debt claim. The decision follows an urgent application filed by the umbrella body to protect its primary assets from being sold to satisfy a claim by PEA Ruiru Co-operative Savings and Credit Society Limited.

Representing KUSCCO, lawyer Cecilia Miller moved the court on January 27, 2026, seeking to freeze the recovery process. The union argued that the loss of its headquarters would lead to “irreparable harm,” noting that such an auction would effectively dismantle the administrative capacity of the national representative for Kenyan SACCOs.

The court accepted the matter as urgent, acknowledging the potential for systemic disruption within the cooperative movement should the enforcement proceed without further review.

Justice Kassan’s ruling outlines a specific roadmap for the resolution of this dispute. Following the 30-day stay, the court has mandated the following schedule:

During the scheduled February hearing, both KUSCCO and PEA Ruiru will present arguments to determine if the suspension of the auction should remain in place or be vacated.

The case—formally titled Kenya Union of Savings and Credit Co-operative Organisation Limited vs. PEA Ruiru Co-operative Savings and Credit Society Limited—carries weight beyond the two parties involved. As the central advocacy group for the sector, KUSCCO’s financial stability is considered a bellwether for the health of Kenya’s cooperative governance.

The outcome of the inter partes hearing on February 12 will be a defining moment for the union’s ability to maintain its operational infrastructure amidst ongoing financial litigation.