Musco Towers in Eldoret Town. PHOTO|NRM
Thousands of Moi University workers who are the members of the troubled Moi University Savings and Credit Society (Musco) have lost their entire life savings to mismanagement.
All that is left of the fallen giant Sacco are two buildings worth a total of Sh800 million.One of the commercial buildings, the bigger Musco Towers in Eldoret town, went under the hammer yesterday amid protests from sacco members.
The Cooperative Bank has instructed liquidators to sell the building to recover some Sh500 million that was borrowed to put up the towers.
In a press advertisement Antique Auctions said it had received instructions to dispose of Musco Towers owned by Musco that is now under liquidation.
“Duly instructed by our chargees, on October 31, we shall sell by public auction the nine-storeyed block located within a prime location in Eldoret town along Elgeyo Road opposite Sirikwa Hotel,” said the advert.
Musco’s ability to meet its financial obligations suffered a major setback June last year when it was ordered closed by then Commissioner of Co-operatives Mary Mungai following failure to abide by co-operative society regulations.
In a gazette notice Ms Mungai said: “I appoint Hesbon Kiura, principal co-operative officer of Nairobi and Joel Kipsanai, senior co-operative auditor of Iten, Marakwet County, as joint liquidators.
According to Jack Willis Abok Musco Sacco spokesman and the secretary-general of the University’s Academic Staff Union (UASU) Moi University chapter, the move is uncalled for and disrespectful to members.
“As members of the Sacco we will not allow the towers to be auctioned and yet we spent Sh400 million through savings and a bank loan to put up the structure in Eldoret’s central business district,” said Abok.
Musco’s fate was sealed at the end of last year when its deposit-taking licence was withdrawn by Saccos Regulatory Authority (Sasra) for failure to keep its books in order.