Keep Paying: KUSCCO Borrowers Get No Pause in Liquidation

A KUSCCO borrower does not get a holiday because the lender is being wound up.

Liquidator Waithaka Ngaruiya issued a notice dated 8 October 2026 telling debtors to keep paying the monthly instalment, into the bank accounts named in the original loan agreement. The liquidation does not suspend the contract. For the borrower, the account number does not change.

What changes is who stands behind the demand. Ngaruiya was appointed under Gazette Notice 15270 of 23 September 2026. A second notice the same day asked creditors to file a proof of debt at KUSCCO Centre, 4th Floor, Kilimanjaro Avenue, Upper Hill.

A creditor who is late can be left out of any distribution made before the claim is checked.

That is the practical split. Borrowers pay. Creditors queue. The union of savings and credit cooperatives had been the wholesale body many saccos used for deposits and loans. A sacco that placed money there is now a creditor, not a customer with a balance it can draw tomorrow. A teacher who borrowed from KUSCCO itself is still a debtor.

Why the instalment still leaves the payslip

Liquidation is the sale of what is left and the payment of who is owed, in the order the law sets. It is not a write-off. If borrowers stopped paying, the pot for creditors would shrink, and the saccos waiting on that pot would take a larger loss. The notice is the liquidator protecting that pot. It does not say how large the hole is, and it does not say when a creditor will see a cheque.

Regulated saccos cut bad loans to KSh 60.45 billion at the end of 2025, from KSh 70.87 billion. That cleaner book is the societies' own lending. KUSCCO is the layer above some of them. A society that is collecting well from members can still be stuck if money it placed at the union is locked in a proof of debt.

A member who signed a guarantee at their own sacco is not released by this notice. A member who borrowed from KUSCCO directly keeps paying, on the old date, into the old account.