A section of members of the Moi University Savings and Credit Society (Musco) on Friday, June 17, 2022, staged a demonstration in Eldoret town streets demanding the reinstatement of their Sacco license.
The aggrieved members carrying placards and banners marched through the streets, as they called on the Co-operative Commissioner David Obonyo to act and ensure a liquidator placed in charge of the Sacco exits.
Addressing the press outside the Musco towers, one of the Sacco’s assets, the members said only the reinstatement of the Sacco license will enable them to get their savings that run into billions.
“Haujaibia mtu. Tulijinyima ndio isaidie watoto wetu lakini saa hizi wako nyumbani. Wengine wamefanya class 8 na form four lakini wako nyumbani,” said a member who says she had saved over Ksh750,000 in the Sacco.
Musco Sacco’s license was revoked and placed under liquidation by the government in 2018.
The Sacco has over 3,700 members who now say the liquidator is no longer serving his purpose.
“The essence of a liquidator was to revive the Sacco as it was alive and kicking. This person has overstayed here. His term lapsed on June 30, 2021, it is close to one year now. He has no other value being around, he is here illegally and needs to back his bags,” said another member.
“As members, we need our certificate. We need the liquidator to go away and hand over our property,” he added.
The Musco members further demanded that all funds collected by the liquidator during the period he has been in charge be accounted for.
According to government data, as of 2018 when MUSCO Sacco’s operating license was revoked, it had liabilities amounting to Ksh1.2 billion compared to member deposits of Kshh563 million.
The Sacco was also deeply indebted with Ksh400 million owed to Co-operative Bank and an extra Ksh58.2 million as interest accrued on the loan.
Ksh317 million was owed to creditors, and also had a Ksh308 million outstanding deposit refund to members.
A Senate Committee on Trade and Tourism had directed that Sacco’s license be reinstated after a petition filed by Uasin Gishu Senator Prof. Margaret Kamar on behalf of the members.
The MUSCO Sacco members now say without reinstatement of the license, over 400,000 defendants will remain suffering.
