Moi University Sacco Loses Court Battle for Musco Towers

Moi University Savings and Co-operative Society members have lost the battle to save their Sh 553 million property from the auctioneer.

The Sacco’s 3,000 members had made an appeal to stop their property from getting auctioned, but their prayer was denied by Justice Hellen Omondi who ruled that the sale of Musco Towers should go on as planned.

Musco towers is a 12-story office building in Eldoret town that was attached to a Sh 553 million loan.

The Sacco members have petitioned Uasin Gishu Senator Margaret Kamar to intervene in the matter. They want Kamar to address it in the Senate.

Musco has been in court with a local bank for more than 10 years in a battle to save the building from getting sold to recover a bank loan secured for construction. They tried unsuccessfully to argue that the building was undervalued in order to save it from the auctioneers gavel.

Justice Omondi ruled that the society was not able to pay back the money and that it was necessary to sell the building to recover the money.

Musco Sacco members are the staff of Moi University, Moi Teaching and Referral Hospital, and the University of Eldoret.

A contractor wanted to be enjoined in the suit to recover Sh 141 million owed to them by the Sacco since 2015.

The property is worth more than Sh 500 million, and loans were extended to the Sacco between 2008 and 2016. The Sacco had given the property as security for the loan.

 

 

 

 

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