Metropolitan National Sacco Limited, previously known as Kiambu Teachers Sacco, has been placed under surveillance.
This is after it showed signs of financial distress and attracted numerous complaints from members.
In a Kenya Gazette Notice Vol. CXXIV —No. 71, dated 22nd April 2022, the Commissioner for Co-operative Development David K. Obonyo has ordered an inquiry into the Society’s by-laws; working and financial conditions; and the conduct of present and past directors and management of Metropolitan National Sacco Limited.
This is in accordance with section 58 as read together with section 73 of the Co-operative Societies Act, Cap 490, laws of Kenya.
The Commissioner has appointed Javel M. Murira, Director of Co-operative Audit, Dr David Gitonga Kahuthu, Manager-Regulations, Kennedy Otachi, Principal Co-operative Officer and Daniel Mue Mwatu, Senior Compliance Officer, to hold an inquiry within 15 days at such place and time as may be expedient and duly notified by them.
Trouble for the 44-year-old Society began more than four years ago when it replaced its long-serving CEO Francis Ngang’a with his then deputy Benson Mwangi. This is after investigators from the Sacco Societies Regulatory Authority (SASRA) descended on the Society to establish its financial viability.
The probe followed complaints by members that they could not get loans or access their salaries when channelled through the Society.
While a consultant was appointed to assist in turning around fortunes of the Society, it took four years before members adopted any recommendations.
At its 44th Annual General Meeting(AGM), held at St Peter and Paul Catholic Primary School, Kiambu, on 16th April 2022, the consultant’s report was tabled for adoption.
During this meeting, the Society’s members also launched an ICT road map and Strategic Plan covering the 2022-2026 period.
Members resolved to set aside KSh 6.7 billion as a provision for bad loans. This situation led to the Society not declaring payment of any dividends to members and reporting a loss for the period ending 31st December 2021.
The Society’s gross non-performing loans hit KSh 9.3 billion at the end of 2021.
During the AGM, members, who mainly comprise civil servants and teachers, resolved to elect new directors and board chairperson, cut down on marketing outlets and branches, and reduce the Society’s staff.
With over 100,000 members, Metropolitan National Sacco is considered the sixth largest DT Sacco with a balance sheet size of KSh 16.73 billion as per SASRA figures for the year ended 31st December 2020.
The Society’s Deposits were KSh 7.64 billion in 2020, with Gross loans of KSh 16.67 billion and a total income of KSh 1.99 billion.
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