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Originally published by Capital News
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September 29, 2026
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High Court strikes out KUSCCO liquidation petition, says co-operative societies governed by separate law

High Court strikes out KUSCCO liquidation petition, says co-operative societies governed by separate law

The High Court has struck out a petition seeking to liquidate KUSCCO under the Insolvency Act, ruling that co-operative societies are governed by the Co-operative Societies Act..

✨ Key Highlights

The High Court in Nairobi has dismissed a petition to liquidate KUSCCO, ruling that co-operative societies operate under a distinct legal framework separate from the Insolvency Act.

  • The court found it lacked jurisdiction to hear the petition filed by RUPSA Regulated NWDT Sacco Society Limited.
  • The ruling cited the Co-operative Societies Act, specifically Sections 95 and 61(5), which mandate liquidation orders from the Commissioner for Co-operative Development.
  • Despite arguments of insolvency, including a statutory demand of approximately Ksh108.85 million, the court maintained that these issues do not grant jurisdiction under the Insolvency Act.

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