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Court Nods To Musco Towers Auction As Shareholders ‘Give Up’

Members of Musco protesting outside Musco Towers. [PHOTO/ COURTESY]

The Co-operative Bank of Kenya has been given a go-ahead to auction the Musco Towers in Eldoret owned by Moi University Savings Co-operative Society (Musco).

The shareholders say that they have given up on the court process and will now turn to leaders to help them save the 12-storey building.

Co-operative Bank is seeking to recover a Ksh533 million loan owed by the sacco which has over 3,000 shareholders.

“The court has made its ruling on the matter and we do not intend to appeal the decision. We are taking the battle to the Senate as that is our last resort,” said shareholders’ representative
Susan Chepchirchir.

Read: Part Of Nextgen Mall Set For Auction Over Unpaid Loans

The shareholders have already petitioned to Uasin Gishu Senator Margaret Kamar to help them settle the 10-year old battle that threatens to take away their investment.

The sacco took the loan 10 years ago to construct the building, and has been unable to service the loan triggering the court battle.

The Contractor Fredrick Opondo of Dinesh Construction Company also wanted to be enjoined in the suit saying that he was not paid for the work done in the construction.

Read: More Distress For Urithi As Panorama Gardens Auction Tussle Continues

The contractor was demanding Ksh141 million in payments with interests at a rate of 14 per cent per annum from June 17, 2015, according to the ruling by Justice Hellen Omondi.

“Musco gave the suit property to the bank willingly and as security which was to be realised in the event of default in repayment,” ruled Justice Omondi.

The judge says that the bank issued several demands and statutory notices which were ignored by the society.

She also ruled that the shareholders of Musco Towers lacked the capacity to sue on behalf of the registered Moi University Savings and Co-operative Society.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

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