Varsity sacco seeks Sh200m Co-op loan talks for recovery

The troubled Moi University Savings Credit Cooperative Society (Musco) has started the process to re-negotiate a Sh200 million Co-op Bank loan as it plans to elect new officials in a turnaround strategy.

Last week, the Senate recommended the reinstatement of its licence within 90 days to allow the members to remit, borrow and access to their savings.

In 2018, the government revoked the licence of the sacco and later placed it under liquidation. A gazette notice published last year by then Commissioner for Co-operative Development Mary Mungai cancelled the registration of the deposit-taking sacco and appointed two liquidators to take custody for a year.

The move came after the institution failed to repay the bank loan.

The sacco has assets worth Sh4 billion that include two buildings, and parcels of land in addition to contributions by its members.

On Tuesday, Uasin Gishu County Eooperatives Executive Esther Mutai and her finance counterpart Julius Ruto said during a meeting with the sacco members in Eldoret town that the devolved unit had begun the process of renegotiating the loans to assist the sacco to get back to its feet.

“We have started to engage the financier and showing their willingness to restructure the loan,” said Mr Ruto.

The sacco is also banking on elections of new officials in its revival strategy. Ms Mutai said that a special general meeting has been scheduled within next 21 days to allow the sacco members to elect new officials.

The local government indicated that it was ready to provide financial support to the Sacco through the county enterprise development fund.

“We want to thank the Senate for standing with the sacco members. You cannot say that sacco was moribund when it had 9,000 account holders in FOSA and Sh54million,” said Ms Mutai.