Metropolitan SACCO on the verge of collapse amid mass member exodus, refund claims

By Jackson OKOTH

Metropolitan National Deposit-Taking SACCO, which has been declared bankrupt, could be sinking deeper into trouble if the mass exodus and the mountain of refund claims are not sorted out soon.

 

A glance at the claims being awarded by the Cooperatives Tribunal suggests a Society that is slowly sliding into liquidation, with no cash or assets left to resuscitate its operations.

 

Between January and July this year, the tribunal has ordered the SACCO to refund cash to over 30 members-mostly teachers- who had lodged suits before it.

 

In one such case, the tribunal has ordered Metropolitan SACCO to refund cash amounting to KSh 417,851.52.00, savings belonging to one Patrick Kiama Mugo, who withdrew membership from Metropolitan SACCO on 22nd April, 2024.

 

In February 2025, the Tribunal directed that Metropolitan SACCO refunds KSh 157,000, savings belonging to Joseph Wandera. In the suit, Wandera states that after notifying the SACCO of his membership withdrawal, Metropolitan SACCO failed to refund his savings, necessitating the filing of the claim before the tribunal, dated 9^th January 2024.

 

With over 100,000 members before it began crumbling, Metropolitan SACCO-formerly known as Kiambu Teachers SACCO, started experiencing problems when its members could not access loan facilities.

 

In a panic, teachers who form the bulk of its membership petitioned the Teachers Service Commission to withhold their deductions to the Society. At the time, some 11,310 teachers had discontinued remitting the monthly SACCO dues following the financial trouble and boardroom squabbles at Metropolitan. Only 2.401 teachers still retained membership by then.

 

This panic withdrawal of teachers from Metropolitan SACCO has been triggered by the Senate Committee on Trade and Tourism, headed by Busia Senator Okiya Omutatah, who asked TSC to stop remitting cash to Metropolitan National Sacco from teachers who had exited.

 

In a well-crafted scheme scam involving possibly Metropolitan SACCO internal audit, Senior staff and some former Directors, the 48-year old Metropolitan National SACCO was sent to the cleaners with millions lost that are still unaccounted for.

 

An audit team appointed in April 2022 by the Commissioner for Co-operatives Development David Obonyo, Metropolitan National was hit by incidences of several forgeries involving falsification of documents, forgery of signatures and fraudulent funds deductions.

 

 While these incidents were referred to the SASRA compliance department, these case files are still under investigations. Four incidents involving forgeries are also still under investigation by the SASRA unit.

 

Established in 1977 as Kiambu Teachers Sacco, Metropolitan Sacco has since opened its common bond to attract all salaried people, businesses, commissions and minors.

 

The Society has 8 branches and 15 satellite offices but only Kiambu and Nairobi, were profitable by the time the Society went under.

 

Other branches include Kisumu, Nakuru, Thika, Kajiado, Limuru and Bungoma with 12 service centres in Mombasa, Eldoret, Machakos, Migori, Nairobi, Siaya, Kitale, Namanga, Loitoktok, Emali, Ngong and Matuu.

 

At its 47^th virtual Annual General Meeting(AGM) members approved a forensic audit report which shows that Metropolitan SACCO cannot trace KSh 15 billion which disappeared from its loan book.

 

The 2024 audited accounts reveal negative equity of KSh12.3 billion, occasioned by a weak liquidity position, high loan default rates, and negative member funds.

 

Metropolitan SACCO held its last AGM on 30th August 2025, virtually following a previous one on 15th August 2024. The SACCO has a new Management and Supervisory Board. Its members have also approved the operating budget for 2025, Capital Expenditure Budget and appointed external auditors while also approving 2024 accounts.