11,310 Teachers Exit Metropolitan Sacco, Halt Remittances
Teachers have raised concerns about the Teachers Service Commission‘s (TSC) deduction of their funds for remittance to Metropolitan Sacco, allegedly without their consent.
Approximately 11,310 teachers have halted their savings contributions to Metropolitan National Sacco Limited, expressing apprehension about the financial stability of the organization.
According to TSC CEO Nancy Macharia, only 2,401 teachers remained active members of the Sacco as of March 31, 2024, while 11,130 had ceased remitting funds.
This revelation came in response to a request for information from the Senate’s standing committee on trade, industrialization, and tourism, prompted by complaints from teachers in Bungoma County regarding compulsory deductions by their employer.
Concurrently, certain Sacco members have intensified their calls for the release of the organization’s financial reports to assess its viability.
Allegations of financial mismanagement have plagued Metropolitan Sacco, prompting the resignation of five senior managers in November 2022 and the subsequent appointment of a caretaker committee.
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In April 2022, a Commissioner of Cooperatives audit uncovered several irregularities, including fictitious dividend payments, financial manipulation, and dubious lending practices.
An investigation revealed suspicious transactions amounting to Sh49 million through M-Pesa by a single teller at the Dacco’s Nakuru branch, as well as an overstatement of the institution’s premier loan facility by Sh7 billion, attributed to disbursals to nonexistent members.
Furthermore, the audit highlighted discrepancies in asset valuation, with Sacco’s reported cumulative assets of Sh28 billion contradicting external auditors’ findings of slightly above Sh14 billion.
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Additionally, false dividend payments, sourced from their savings rather than surplus reserves, misled members.
These revelations underscore the urgent need for transparency and accountability within Metropolitan Sacco to restore trust among its members and stakeholders.
11,310 Teachers Exit Metropolitan Sacco, Halt Remittances
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