The government has launched a fresh inquiry into the operations of Metropolitan National Sacco, focusing on its by‑laws, financial status, and overall sustainability. The move was announced in a gazette notice dated June 15, 2026, by Commissioner for Co‑operative Development David Obonyo.
The Sacco was declared technically insolvent in February 2025, after regulators flagged mismanaged funds estimated at Sh7 billion. At the Sacco’s August 2025 annual general meeting, members were confronted with reports of an untraceable loan book worth Sh50 billion and negative shareholder equity of Sh12 billion, prompting a vote for an independent forensic audit.
This marks the second formal inquiry into Metropolitan since April 2022, when an earlier gazette notice ordered investigations into its by‑laws, financial conditions, and management conduct.
The latest order directs Principal Co‑operative Officer Habil Olembo and Assistant Director of Co‑operative Audit Silars Okoth Dede to complete the inquiry within ten days and submit their findings.
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The probe comes just days before 19 current and former Metropolitan officials return to court on June 22 for further directions in a case where they face charges of conspiring to defraud the Sacco of Sh14.4 billion between 2012 and 2021.
The officials were arraigned at the Milimani Law Courts on May 26, 2026, with prosecutors alleging an unlawful Sh1.01 billion investment in Kitengela land outside the Sacco’s mandate, alongside failure to maintain the statutory 15 percent liquidity ratio.
The Sacco Societies Regulatory Authority (SASRA) has since restricted Metropolitan to credit‑only operations this year to limit further depositor losses. Meanwhile, the Co‑operatives Tribunal continues to order individual refunds to members who have exited the society.
By Masaki Enock
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