- Metropolitan Sacco faces possible winding up after a fresh inquiry found continued financial distress.
- Authorities are weighing three options as members seek access to their savings.
- Nearly all of the Sacco’s loan book was reportedly in default, deepening concerns over its survival.
The government is considering winding up Metropolitan Sacco after a fresh inquiry found little improvement in the institution’s financial position over the past three years.
Commissioner for Co-operatives David Obonyo said the sacco remains insolvent despite being given time to recover from its financial difficulties.
Obonyo said the government is considering three options for the troubled institution: winding it up, merging it with another Sacco or facilitating its acquisition. He added that a final decision would be made after consultations with members and other stakeholders.
The latest inquiry, conducted in June, assessed Metropolitan Sacco’s financial health, sustainability and operations amid ongoing legal battles involving former officials accused of fraud.
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The Sacco closed 2024 with deposits of Ksh7.41 billion and a loan book valued at Ksh17.2 billion. However, nearly 99 per cent of its loans were reported to be in default, raising concerns about its ability to continue operating as a going concern.
The institution is also facing growing pressure from members seeking refunds of their savings. Some members have obtained orders from the Co-operative Tribunal compelling the Sacco to release their funds.
Metropolitan Sacco has previously been subjected to investigations over alleged misappropriation of billions of shillings and an untraceable Ksh50 billion loan book.
The developments have intensified concerns over the future of the Sacco, with authorities now weighing options that could determine whether it survives, merges with another Sacco or is eventually wound up.
By Bernard Magada
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