Cabinet Secretary for Cooperatives and MSMEs, Wycliffe Ambetsa Oparanya, has appeared before the Senate to respond to questions raised by Senator Prof. Margaret Kamar regarding the ongoing liquidation of the Moi University Savings and Credit Society (MUSCO).
Raising the matter, Senator Kamar questioned the transparency and fairness of the process.
“Mr. Speaker, I am deeply concerned about the ongoing liquidation of MUSCO. Thousands of members, including staff and retirees, are in the dark. Has a forensic audit of the liquidation account been considered, and are stakeholders being adequately consulted?” she asked.
In response, CS Oparanya emphasised the Ministry’s ongoing oversight role.
He noted that under Section 68 of the Cooperative Societies Act, the Ministry contracted private audit firms to audit MUSCO’s accounts up to 2021.
“We are committed to facilitating prompt auditing for the remaining years to ensure full accountability,” he said.
Senator Kamar further pressed for clarification on the involvement of oversight bodies and local stakeholders:
“Have the SACCO Societies Regulatory Authority, the Uasin Gishu County Government, and IGRTC been included in this process? And what role are MUSCO members playing in shaping the outcomes of this liquidation?” she asked.
CS Oparanya, however, assured the Senate that all relevant parties had been engaged:
“The liquidator, as required by law, has been working closely with a dedicated liquidation committee,” he explained. “The Ministry has also facilitated consultative meetings—particularly with the Uasin Gishu County Government—through the Intergovernmental Relations Technical Committee. This process has been inclusive and is guided strictly by the law.”
Why MUSCO’s certification has not been reinstated
Responding to questions on why the Commissioner for Cooperatives had not reinstated MUSCO’s back-office certification, the CS once a cooperative’s registration is cancelled, the current legal framework does not allow for reinstatement.
“However, an appeal process is available and must be initiated within 30 days of cancellation. Without this, the liquidation proceeds as outlined in law,” he said.
On the implementation of the recommendations from the Taskforce appointed under Gazette Notice No. 16776, Senator Kamar asked for a status update.
“Has the Ministry acted on the taskforce’s findings, and when can members expect practical outcomes?”
CS Oparanya responded: “We received the draft report in January and conducted a thorough review. We are now developing a Concept Note that will form the basis for an implementation plan aligned with Senate recommendations and the task force’s proposals.”
He also reaffirmed the Ministry’s commitment to ensuring that all interventions—audits, consultations, and legal procedures—are executed in full compliance with the Cooperative Societies Act.
“Above all, we are committed to protecting the rights and interests of MUSCO members and other stakeholders,” he noted.
