RUPSA SACCO, formally PCEA Ruiru SACCO, has secured legal approval to auction assets belonging to the Kenya Union of Savings and Credit Cooperatives (KUSCCO), intensifying a high-profile financial dispute within the country’s cooperative sector.
RUPSA Regulated Non-Withdrawable Deposit (NWDT) SACCO Society Ltd said it had obtained orders from the Co-operative Tribunal allowing it to attach and sell movable assets owned by KUSCCO in an effort to recover more than Sh108.8 million in deposits that remain unpaid.
“The Tribunal on 19th January, 2026 issued orders permitting RUPSA SACCO’s auctioneers to attach and sell by auction KUSCCO’s moveable assets such as motor vehicles, office equipment, as well as consumables in order to recover the outstanding amount,” the SACCO said in a statement.
The ruling follows months of legal proceedings after earlier attempts at amicable settlement failed.
The decision underscores growing tensions within Kenya’s cooperative movement, where SACCOs play a critical role in mobilizing savings and financing households and small businesses.
The dispute also raises broader questions about governance, liquidity management and accountability among apex cooperative bodies.
According to RUPSA SACCO, the funds in question stem from fixed deposit investments it made with KUSCCO beginning in 2018.
The SACCO said the investments were intended to generate stable returns for its more than 8,000 members, who collectively hold deposits exceeding Sh8 billion.
By July 2023, RUPSA had deposited Sh88.9 million with KUSCCO. Instructions issued in April 2023 to withdraw Sh65 million while rolling over the remaining balance were not honored, RUPSA said.
KUSCCO reportedly cited liquidity constraints as the reason for failing to release the funds.
“Upon maturity of the investment in January 2024, KUSCCO still did not refund the monies, despite acknowledging receipt of several demand letters from us.
Again, Kuscco claimed it was facing monetary challenges, but noted it was committed to settle the claim in full.” The SACCO said.
In April 2025, the Co-operative Tribunal ruled in favour of RUPSA SACCO, finding that KUSCCO had breached its contractual obligations.
The tribunal ordered KUSCCO to refund Sh108.8 million, a figure that includes principal investment amounts, accrued interest, taxed costs and collection fees.
The ruling also required KUSCCO to pay additional interest on the principal amount, as well as tribunal-imposed interest.
RUPSA said the judgement validated its claim that its members’ funds had been unlawfully withheld.
However, the SACCO alleges that KUSCCO failed to comply with the tribunal’s orders.
According to the statement, KUSCCO failed to honor the directive. However, in recent months, it has issued updates stating it has paid other members Sacco’s a total of KES 369.3 Million in the two years to December 2025.
KUSCCO reportedly said it had sourced funds from the liquidation of non-core assets, including property, and from enhanced loan recoveries.
Despite these measures, RUPSA maintains that the judgement debt remains unpaid.
Faced with continued non-compliance, RUPSA sought further legal redress. T
he tribunal subsequently granted authority for the SACCO’s auctioneers to attach and sell KUSCCO’s movable assets.
These assets may include motor vehicles, office equipment and furniture, as well as consumables, in order to recover the outstanding sum.
RUPSA’s acting chief executive, Julius Mbugua Mwangi, said the SACCO had exhausted diplomatic and legal avenues before pursuing enforcement action.
“Our only objective is recovery of our members’ funds,” Mr Mwangi said. “After exhausting diplomatic engagement, we sought redress from the tribunal and obtained a favourable judgement.
Given the legal implications of the matter, we expected the outstanding debt to be accorded appropriate priority by KUSCCO.”
He added that KUSCCO had been formally notified of the auction orders but had yet to comply with the tribunal’s ruling, leaving RUPSA with “no option but to explore other options to recover our money”.
The dispute has drawn attention within Kenya’s cooperative sector, which manages billions of shillings in member savings and plays a central role in financial inclusion.
SACCOs are regulated by the Sacco Societies Regulatory Authority (SASRA) and are required to maintain prudent liquidity and risk management practices.
RUPSA SACCO, which is headquartered in Ruiru town describes itself as a Christian-based, non-withdrawable deposit-taking cooperative.
It says its mission is to promote financial service delivery that mobilizes savings and offers affordable credit to empower members socially and economically.
The SACCO said it regretted the need to pursue enforcement measures but insisted it was acting in the best interests of its members, whose savings had been tied up for more than two years.
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