Oparanya: Moi University Sacco liquidation still on course

The government has instituted measures to enhance integrity and effectiveness of the liquidation of Moi University Savings and Credit Society (Musco).

Cooperatives, Micro Small and Medium Enterprises Development Cabinet Secretary Wycliffe Oparanya told senators that his ministry has conceptualised a framework to engage Musco members and other stakeholders regarding the future of the institution.

The CS said they will work with the Intergovernmental Relations Technical Committee, the County Government of Uasin Gishu, and relevant institutions to ensure the recommendations of the Senate, the Task Force, and other key actors are implemented.

“The Ministry remains firmly committed to ensuring that all interventions undertaken— including audits, stakeholder consultations, and policy deliberations — are guided by the provisions of the Cooperative Societies Act and other applicable legal frameworks, with a primary focus on safeguarding the rights and interests of MUSCO members and stakeholders,” said Oparanya.

Nominated Senator Margaret Kamar had asked Oparanya to explain what the Government is doing to facilitate full implementation of the recommendations of the Taskforce appointed vide Gazette Notice No. 16776 of 8th December 2023 to review the status of the Moi University Savings and Credit Cooperative (in Liquidation).

Oparanya said the Ministry will continue to work in close collaboration with the Intergovernmental Relations Technical Committee, the County Government of Uasin Gishu, and all other relevant institutions to ensure that the recommendations of the Senate, the Task Force, and other key actors are considered and implemented in strict adherence to the law.

Kamar asked what steps the Ministry taken to facilitate the involvement of the Sacco Societies Regulatory Authority (SASRA), County Government of Uasin Gishu, Intergovernmental Relations Technical Committee (IGRTC), MUSCO members and other relevant stakeholders in the MUSCO liquidation process.

“In accordance with the provisions of the Cooperative Societies Act, the Commissioner is empowered under Section 65 to appoint a liquidator with the responsibility for the liquidation of a cooperative society is vested in the liquidator, whose mandate is clearly outlined under Section 66 of the Act,” said Oparanya.

He said the liquidator may appoint a liquidation committee to support the execution of the liquidation process and that in the case of MUSCO, the County Government of Uasin Gishu expressed concerns regarding the conduct of the liquidation process which were duly addressed through deliberations convened by the Intergovernmental Relations Technical Committee which facilitated a series of consultative meetings to resolve the issues raised.

Oparanya said the matter was considered by the National Assembly Departmental Committee on Trade, Industry and Cooperatives and during its proceedings received submissions from MUSCO members and other relevant stakeholders, who were invited to appear and present their representations for consideration.

Kamar asked for a forensic audit of the liquidation account of the Moi University Savings and Credit Society (MUSCO) and disclose the findings of such audit with Oparanya relying that the Ministry shall institute appropriate measures to facilitate the prompt auditing of the accounts for the outstanding years.

“Why has the Commissioner for Cooperatives failed to reinstate certification for resumption of back-office operations by the Moi University Savings and Credit Society, in line with the recommendation made by the Senate Committee on Tourism, Trade and Industrialization in July 2021 following its consideration of the Petition to the Senate regarding the liquidation of MUSCO,” asked Kamar.

Oparanya said the current cooperative legal framework does not provide for the reinstatement of registration for a cooperative society whose registration has been cancelled, rather it permits an appeal against the cancellation order issued by the Commissioner to be lodged with the Cabinet Secretary within 30 days, with a further right of appeal to the High Court.