Kenya’s 54-year-old Ufundi SACCO lists Co-op Plaza for sale over $2 million loan

Ufundi Savings and Credit Co-operative Society (SACCO) has opened bidding for the sale of Ufundi Co-op Plaza, a 13-floor commercial office tower in Nairobi’s central business district, marking a major step toward resolving a decade-long ownership and debt dispute tied to the property and a Ksh254 million ($1.96 million) loan.

Located at the junction of Moi Avenue and Moktar Daddah Street, the building comprises three basement levels and approximately 49,000 square feet of lettable office space. The disposal follows a court determination allowing the sale while recognizing ownership rights of both the SACCO and investor members who financed the project.

Ufundi SACCO opens tender process for Nairobi commercial asset

According to a public tender notice issued by Ufundi SACCO, interested bidders can obtain tender documents from the Chief Executive Officer’s office located on the 12th floor of Ufundi Co-op Plaza. Participants are required to pay a non-refundable fee of Ksh5,000 to access the tender documents.

Completed bids must be submitted to the CEO’s office by July 1, 2026, at 12:00 p.m., while opening of submissions is scheduled for 1:00 p.m. on the same day at the SACCO boardroom. Prospective bidders may attend the opening exercise. The planned disposal represents one of the most notable commercial property transactions involving Kenya’s co-operative sector in recent years.

Court ruling reshaped ownership of Ufundi Co-op Plaza

At the center of the planned sale is a long-running legal battle involving Ufundi SACCO, hundreds of its members, and Cooperative Bank over ownership of the office complex.

The dispute stemmed from financing arrangements used to construct the property, including member contributions, SACCO resources, and borrowing from Cooperative Bank of Kenya.

Members opposed earlier efforts to dispose of the building, arguing that contributors should first receive recognition of their financial interests before any sale proceeds were applied toward settling debt obligations.

In a ruling delivered on February 18, 2025, in the case involving Ufundi Savings & Credit Co-operative Society Limited v Bernard Ndungu Kariuki & 299 others; Alex G Marete & 81 others (Interested Parties), the court determined that ownership of Ufundi Co-op Plaza is shared between the SACCO and investment members who contributed toward its development.

The court allowed disposal of the asset and ordered that ownership interests be recognized under a 50.88 percent allocation to the SACCO and 49.12 percent allocation to investment members. The decision overturned earlier findings issued by the Co-operative Tribunal that had favored the SACCO and granted injunctive relief against members.

Financial pressure and debt recovery efforts

Founded in 1972 under Kenya’s Co-operative Act, Ufundi SACCO originally served employees within the Ministry of Roads and Public Works. Following liberalization of Kenya’s SACCO movement during the 1990s, membership expanded to include personnel from additional ministries, parastatals, private institutions, and other sectors.

The sale is expected to support settlement of a long-standing KSh254 million obligation owed to Cooperative Bank, which financed part of the development of the property.

For Ufundi SACCO, the disposal could unlock liquidity while bringing closure to years of litigation that delayed financial resolution and asset restructuring.

The transaction also underscores growing pressure within parts of Kenya’s co-operative movement to optimize balance sheets and reassess legacy real-estate investments. The planned sale highlights broader shifts underway across Kenya’s SACCO sector, where institutions are balancing real-estate ambitions with capital discipline and member accountability.