Nairobi, Jan. 27 -- A Ruiru-based sacco has obtained court orders allowing it to auction movable assets belonging to the Kenya Union of Savings and Credit Cooperatives (Kuscco) over unpaid deposits and interest amounting to Sh108.8 million.

The move threatens to further complicate Kuscco's efforts to stabilise its finances after it emerged that more than Sh13 billion was lost, allegedly through fraud involving some of its former officials and through investments in business lines it was not licensed to undertake, including lending, mortgages and insurance.

The losses, combined with defaults on loans and mortgages it had issued irregularly, had severely strained its liquidity and left it unable to meet obligations to member saccos.

This...