A major financial crisis has hit the Metropolitan National Sacco Society Limited, revealing that over 100,000 members have collectively lost Ksh 15 billion in savings between 2021 and 2023. The fallout has deeply affected many members, predominantly teachers and civil servants, who now face significant financial uncertainty.
The interim chairperson of the Sacco has accused previous management of severe mismanagement and failing to safeguard members’ funds. These allegations are part of a broader investigation into a suspected scheme involving high-ranking officials who reportedly embezzled billions.
An audit earlier this year uncovered that approximately Ksh 12 billion was misappropriated through a complex network involving both former and current staff and board members. The audit exposed systemic fraud, including the misdirection of funds through hidden channels, leaving members unable to access their savings or obtain loans.
The scandal first came to light three years ago when member complaints led to an investigation. Despite these findings, no prosecutions have been made, and the misappropriated funds remain unrecovered.
Notable discoveries included a Ksh 49 million withdrawal by a teller at the Nakuru branch and Ksh 7 billion lent to fictitious members, raising serious concerns about the integrity of the Sacco’s loan procedures. Additionally, the audit revealed that dividends and rebates had been paid from members’ deposits rather than profits, artificially inflating the Sacco’s financial statements from Ksh 14 billion to a misleading Ksh 28 billion.
Further irregularities included Ksh 490 million in questionable loans to Sacco employees and Ksh 176.9 million missing from the Kisumu, Thika, and Kiambu branches. These revelations have eroded trust among members, who are now worried about the recovery of their funds.
The Metropolitan Sacco, originally founded in 1977 as Kiambu Teachers Sacco and later rebranded, has seen its membership broaden significantly. However, the current crisis threatens to reverse years of progress.
On August 15, the Sacco’s interim board called on government agencies, including the Directorate of Criminal Investigations (DCI), to expedite their investigations and recover the stolen funds. The interim leadership acknowledged the severity of the situation and sought to reassure members, highlighting that the current operational funds are being utilized for ongoing services.
By Nairobi