- Metropolitan Sacco members get more time as liquidation talks are paused
- The government weighs the Sacco’s future amid financial concerns
- Members face a key decision over the society’s survival
The government has suspended talks on the possible liquidation of Metropolitan National Sacco for 45 days, giving its members, who are mostly teachers, time to complete this year’s school calendar.
Commissioner for Co-operatives David Obonyo said members had asked for the delay to finish the third term, and the request was accepted. A meeting had been planned to present an inquiry report to members and get their input before a decision on the future of the 49-year-old Sacco, formerly known as Kiambu Teachers Sacco.
The government is weighing a winding up after a fresh inquiry found little improvement in the Sacco’s financial health over the past three years. The inquiry examined its by-laws, financial status, sustainability and viability. It was ordered through a gazette notice dated June 15, 2026.
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The Sacco’s troubles are not new. The Commissioner declared it technically insolvent in February 2025, citing about Ksh7 billion in mismanaged funds. Obonyo has since said the Sacco is insolvent and could be wound up if efforts to secure a merger or acquisition fail.
The numbers explain the concern. The Sacco closed 2024 with Ksh7.41 billion in deposits and a Ksh17.2 billion loan book, of which 98.99 per cent was in default. At its annual general meeting in August 2025, members heard of an untraceable loan book of Ksh50 billion and negative shareholder equity of Ksh12 billion. They then voted for an independent forensic audit.
The Sacco Societies Regulatory Authority (SASRA) has restricted Metropolitan to credit-only operations to limit further losses for depositors. Meanwhile, the Cooperatives Tribunal continues to order refunds to members who have exited the society.
By Benedict Aoya
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