NAIROBI, Kenya, Sept 28 – The Commissioner for Co-operative Development has appointed Waithaka Ngaruiya of Waithaka and Associates as the new liquidator of the Kenya Union of Savings and Credit Co-operatives (KUSCCO) Limited, despite a court order temporarily suspending the liquidation process.

In a special Gazette notice dated September 23, Commissioner David Obonyo appointed Ngaruiya for a period of up to one year.

The liquidator has been directed to take custody of KUSCCO’s property, books and documents required to complete the liquidation.

The appointment replaces three officials from the State Department for Co-operatives who had earlier been appointed to oversee the liquidation. They are Deputy Commissioner for Co-operative Development Peter Wanjohi Kiama, Principal Co-operative Officer Habil Olembo Jesse and Deputy Chief State Counsel Mariam Adam Abubakar.

KUSCCO shareholders voted to dissolve the union on August 28 after an audit showed liabilities of about Sh17 billion against assets of approximately Sh5.4 billion.

On August 31, Obonyo cancelled KUSCCO’s registration and ordered its liquidation.

The High Court later issued orders on September 8 temporarily stopping the three State-appointed liquidators from taking control of KUSCCO’s assets.

The order followed a case filed by RUPSA Regulated NWDT SACCO Society Limited, which argued that the liquidators’ powers conflicted with existing court orders protecting KUSCCO’s assets.