Nineteen current and former officials of Metropolitan National Sacco have been charged in court over an alleged KSh14.4 billion fraud scheme and a series of violations of Kenya’s Sacco regulations linked to the management of the institution between 2012 and 2021.
According to court documents presented by the prosecution, the accused persons face a principal charge of conspiracy to defraud contrary to Section 317 of the Penal Code. Prosecutors allege that the officials, together with others not before the court, conspired to defraud the Sacco of KSh14,497,677,664 over the nine years.
The prosecution further alleges that senior officials irregularly approved the investment of KSh1.01 billion belonging to the Sacco in the purchase of land in Kitengela. Investigators argue that the transaction constituted an investment in a non-core business, contrary to provisions of the Co-operative Societies Act.
The accused are also facing multiple charges under the Sacco Societies Act and related prudential regulations.
Among the allegations is failure to maintain the mandatory 15 per cent liquidity ratio required to safeguard members’ savings deposits and short-term liabilities.
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Prosecutors further claim that the officials failed to establish and maintain a credit committee as required by law, a lapse that allegedly weakened the Sacco’s credit risk management systems.
Additional charges include failure to maintain proper books of accounts reflecting the Sacco’s true financial position, failure to appoint an internal auditor, and failure to ensure that loans issued to members were adequately secured through sufficient collateral.
By Our reporter
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