The government has suspended talks over the liquidation of the troubled Metropolitan National Sacco for 45 days to allow members, who are mostly teachers, to complete the school calendar for this year.
The government had scheduled a meeting for Wednesday to present an inquiry report to the members for their input before deciding on the fate of the 49-year-old Sacco, formerly known as Kiambu Teachers Sacco.
Commissioner for Co-operatives David Obonyo said the Sacco members had asked for the postponement of the meeting for 45 days to be able to complete the third term of the current school calendar, a request which was accepted.
“We were to have a members meeting on September 30 to present the inquiry report for the members to have their input, but I have seen they have done an appeal for the extension. They want some 45 days before they convene the meeting because of the ongoing school sessions,” he told the Nation in an interview.
“So the matter is within the ministry for determination whether we are going to give, but already actually the time has gone because it was supposed to have been before the end of last month (September 30). So it is like in a way we have given them consent to postpone it until teachers can finish the classes, most likely the forthcoming exams,” he said.
The law requires that if an inquiry into a Sacco is carried out, the report must be presented to the Sacco members before action is taken based on the report’s recommendations.
Some of the 19 people accused jointly conspiring to defraud the Metropolitan National Sacco of over Sh14 billion, appear in Nairobi court on June 22, 2026. They were released on a bond of Sh200,000.
Photo credit: Billy Ogada | Nation Media Group
The government is considering winding up Metropolitan Sacco after a fresh inquiry found little improvement in the institution’s financial health over the past three years.
Mr Obonyo said that the preliminary findings suggested the Sacco might not be revived, leaving wind-up as an option.
“Winding up is one option; the other option will be merger and the other one will be acquisition. If they don’t get anyone to merge or acquire them, then the remaining option is winding up,” he said.
The government ordered a fresh inquiry in June to establish the Sacco’s financial position amid legal battles involving former officials who have been charged over alleged fraud at the institution.
The inquiry examined the Sacco’s by-laws, financial status, sustainability and viability. It was intended to establish the Sacco’s true financial position and help the government to identify measures to protect members from further financial losses as the institution’s problems deepened and withdrawal claims continued to rise.
An initial investigation of transactions at the Sacco in 2022 unearthed irregularities such as fictitious dividend payments, cooking of financial books and irregular lending.
The audit further revealed that the management of the Sacco hoodwinked members with false dividend payments despite non-existent surplus reserves from which such disbursements are made.
In May,19 former officials were charged with nine counts, including conspiracy to defraud the Sacco of Sh14.9 billion on diverse dates between 2012 and 2021.
