The High Court has issued a temporary injunction blocking the auction of assets belonging to the Kenya Union of Savings and Credit Cooperatives Limited (Kuscco) over an unpaid debt of Sh108.8 million owed to RUPSA Sacco.
Justice Linus Kassan granted a 30-day stay of execution, preventing auctioneers from selling off Kuscco's motor vehicles and office equipment while the cooperative appeals a December 2025 tribunal ruling.
The orders followed an urgent application filed by KUSCCO on January 27, 2026, through its advocate Cecil Miller, seeking to stop execution proceedings initiated by PCEA Ruiru Co-operative Savings and Credit Society Limited.
The debt stems from fixed deposits that RUPSA Sacco (formerly PCEA Ruiru Sacco) placed with Kuscco between 2018 and January 2024.
When the deposits matured, Kuscco failed to refund them due to severe liquidity challenges.
Court documents reveal that auctioneers had already conducted a proclamation of Kuscco's assets on January 21, 2026, with an attachment scheduled for January 28.
The assets identified for sale included multiple vehicles and office furniture valued at hundreds of thousands of shillings.
"Unless interim orders are urgently granted to restrain the respondent and its auctioneers, they are poised to proceed with the intended attachment and sale, an action that would render the pending appeal nugatory and cause irreparable loss to the applicant," argued Cecil Miller, Kuscco's lawyer.
Mr Miller emphasised the urgency of the situation, noting that warrants of attachment issued on January 19, 2026, had already been served on Kuscco.
"The applicant now faces imminent and irreversible seizure of its assets, which, if carried out, will render the pending appeal meaningless," he told the court.
Kuscco acknowledged the debt during tribunal proceedings but cited severe liquidity problems that came to light in late 2023.
These financial difficulties led to dramatic institutional changes, including the dissolution of Kuscco's board, appointment of an interim management team, and temporary suspension of withdrawals by member Saccos.
Miller argued that the tribunal failed to adequately consider evidence of Kuscco's liquidity crisis and the broader implications for the cooperative sector.
"It is in the interests of justice, fairness, and the preservation of Applicant's lawful rights that this Application be treated with utmost urgency and that interim relief be granted without delay, to prevent irreparable loss," the lawyer stated in court filings.
RUPSA Sacco maintains it is simply enforcing a lawful judgment after months of non-payment.
The tribunal had ordered Kuscco to pay Sh108.8 million, comprising the principal amount of Sh88.9 million, plus interest and legal costs.
The creditor obtained warrants of attachment on January 19, 2026, and moved swiftly to execute the decree through auctioneers, who conducted proclamations at Kuscco's premises two days later.
