SACCOs Owed by KUSCCO Given Deadline as Liquidation Begins

The Kenya Union of Savings and Credit Co-operatives Union Limited (KUSCCO) has issued a notice to its debtors, directing them to continue servicing their loans as the organisation undergoes liquidation.

In a notice dated Thursday, October 8, liquidator Waithaka Ngaruiya advised all debtors to maintain their monthly repayments in line with the agreements they had entered into with KUSCCO.

The notice clarified that the liquidation process would not suspend the payment obligations of individuals and entities that owed money to the organisation.

"All debtors of Kenya Union of Savings and Credit Co-operatives Union Limited (KUSCCO) are advised to continue paying their respective monthly installments, as they fall due through the bank details as provided in the agreements between the debtors and KUSCCO," the notice read.

The directive was issued alongside a separate notice announcing the appointment of Ngaruiya as the liquidator of KUSCCO.

In the notice of appointment, the liquidator also directed creditors who were owed money by KUSCCO to formally submit details of their claims for consideration during the liquidation process.

"Creditors of KUSCCO are required to send full particulars of their claims by filing their Proof of Debt against the Co-operative with the undersigned Liquidator via the registered Head Office of the co-operative or alternatively via email on [email protected] and [email protected], in default thereof, they may be excluded from the benefit of any distribution made before such debts are proved," the notice read.

Creditors were advised to submit their proof of debt through KUSCCO's registered head office at KUSCCO Centre, 4th Floor, Kilimanjaro Avenue, Upperhill, Nairobi, or through the email addresses provided in the notice.

The liquidator warned that creditors who failed to prove their debts could be excluded from distributions made before their claims were established.

Elsewhere, this comes months after the Policyholders Compensation Fund (PCF) announced the commencement of compensation payments to policyholders of Trident Insurance Company Limited with unsettled claims.

In a notice on Tuesday, April 14, PCF invited policyholders and claimants of Trident Insurance to file for compensation.

"Notice is hereby given that Policyholders Compensation Fund, in exercise of the powers conferred under Section 179 of the Insurance Act and the Insurance (Policyholders Compensation Fund) Regulations 2010, has commenced payment of compensation to policyholders and claimants of Trident Insurance Company Limited (under Statutory Management)," read the notice in part.

The fund said the affected policyholders and claimants of the Insurance company are required to submit their applications through its online claims portal accessible via its official website, www.pcf.go.ke.

The claimants must first register an account by following the provided instructions on the portal. Upon successful registration, they will receive an email notification.

They will then complete the claim form available on the portal and upload all required supporting documents before submission.

"Upon successfully applying and submitting through the portal, you will receive an email containing a claim number," PCF stated.

However, PCF said the claims must be filed within two years of the date of publication of the notice; failure to do so will result in claimants losing eligibility for compensation.

Additionally, the fund said all claims will undergo a verification and approval process, and the maximum compensation is capped at Ksh500,000 per claim as provided under statutory limits.

"The process of verification and approval for payment will be done in line with the Fund’s guidelines and procedures, with the maximum amount payable capped at Ksh500,000.00 per claim based on the statutory limits," the notice added.