The Milimani Law Courts, in an urgent application, has imposed a restraining order on prominent blogger Cyprian Nyakundi, prohibiting him from disseminating purportedly false information about Kenya Union of Savings and Credit Co-operatives (KUSCCO) CEO George Ototo through his widely followed X account.
KUSCCO, a significant entity within Kenya’s cooperative sector, alongside CEO George Ototo, took legal action against Nyakundi, accusing him of engaging in a series of posts on X that allegedly tarnished the reputation of the prominent Sacco, potentially causing panic among its members and jeopardizing its stability.
The crux of the matter revolves around Nyakundi’s allegations, which KUSCCO vehemently refutes, suggesting that Nyakundi might be serving as a conduit for the Sacco Societies Regulatory Authority (SASRA).
SASRA has failed to substantiate any claims of misappropriation of funds by KUSCCO or its CEO, adding weight to KUSCCO’s plea to cease Nyakundi’s dissemination of purported falsehoods.
Nyakundi, acknowledging the court’s order on his X account, conveyed that he would refrain from further posts specifically regarding KUSCCO CEO George Ototo due to the court-imposed gag order. However, he clarified that the order doesn’t prohibit him from discussing KUSCCO as an institution.
Yes. The order does not restrain me from
talking about KUSCCO as an institution. Just restrains me from talking about the CEO. So my posts will continue… https://t.co/GUpQm8PB8u— Cyprian, Is Nyakundi (@C_NyaKundiH) December 23, 2023
In a public statement, Nyakundi stated, “Court has gagged me from discussing the ongoing investigation by SASRA, CBK, Ministry of Cooperatives, and other accountability institutions at the behest of KUSCCO CEO George Ototo. It’s a regrettable turn of events.”
Sorry guys looks like KUSCCO CEO George Ototo has gone to court and requested that I don’t talk about the current investigation being carried out by Sassra, CBK, Ministry of cooperatives and other accountability institutions… It is what it is… Court has gagged me… pic.twitter.com/Gajhh8DdhB
— Cyprian, Is Nyakundi (@C_NyaKundiH) December 23, 2023
Nyakundi’s recent series of posts on KUSCCO and its CEO had reportedly propagated concerns about the Sacco’s stability, prompting urgency among its members to withdraw their funds. Given the sensitive nature of the financial sector, these posts created substantial ripples that couldn’t be disregarded lightly.
The court’s intervention comes amidst escalating tensions stemming from Nyakundi’s allegations and their potential repercussions on the stability and reputation of KUSCCO.
A section of individuals at KUSCCO have accused Nyakundi of attempting to exhort money from them to kill the story.
As the legal proceedings unfold, the matter remains a focal point in Kenya’s financial landscape, highlighting the intersection of media, accountability and the cooperative sector’s integrity.