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Troubled Moi University Sacco’s licence revoked, placed under liquidation

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Mary Mungai, commissioner for co-operative development. PHOTO | SALATON NJAU

The government has revoked the licence of Moi University Sacco and placed it under liquidation.

Through a gazette notice published Friday, commissioner for co-operative development Mary Mungai cancelled the registration of the deposit-taking sacco and appointed two liquidators to take custody of the troubled sacco for a year.

“I appoint Hesbon M. Kiura, principal co-operative officer of Nairobi and Joel Kipsanai, senior co-operative auditor of Iten, Marakwet County to be the joint liquidators for a period not exceeding one year and authorise them to take into their custody all the properties of the said society including such books and documents as are deemed necessary for completion of the liquidation,” she said.

Mid-last year, Moi University Sacco was among several deposit-taking co-operatives that survived closure after the Sacco Societies Regulatory Authority (Sasra) extended permits for a period of six months to allow them comply with capital adequacy and corporate governance rules.

READ: Troubled saccos get six more months to comply

Sasra rules require that saccos maintain a minimum 15 per cent liquidity ratio and file a report every month, which details the liquid assets and balance of short-term liabilities.

The regulations also require saccos to maintain a core capital of not less than Sh10 million and a core capital to total assets ratio of 10 per cent.

The core capital to deposit and institutional capital to total assets should be at eight per cent each.

Ms Mungai also revoked the licence of Mumias-based Nitunze Sacco Society.