NAIROBI, Kenya, June 16 – The government has ordered a fresh inquiry into the collapsed Metropolitan National Savings and Credit Co-operative Society (Metropolitan Sacco), nearly two years after thousands of members were locked out of their savings.
In a Gazette Notice, the Commissioner for Co-operative Development, David Obonyo has directed an investigation into the Sacco’s by-laws, financial position, governance, and overall sustainability.
The inquiry will be conducted under Sections 58 and 73 of the Co-operative Societies Act.
Principal Cooperative Officer Habil Olembo and Assistant Director of Cooperative Audit Silars Okoth Dede have been appointed to lead the probe, which is expected to take 10 days.
The officials will examine how the Sacco was run, its financial health, and the decisions that led to its collapse.
The move comes as recovery efforts within the Sacco reveal deeper financial strain. Members recently approved a forensic audit that uncovered a Sh15 billion gap in the loan book, raising fresh concerns over lending practices, loan recovery systems, and possible irregularities in financial reporting.
The findings suggest a larger financial shortfall than earlier disclosed, increasing pressure on efforts to trace and account for members’ deposits.
Regulators are now seeking to establish what went wrong at one of the country’s once-largest deposit-taking Saccos, which grew rapidly before running into financial difficulties.
The collapse has raised broader concerns about governance and oversight in the co-operative sector, with members calling for stronger protection of savings.
The outcome of the inquiry could lead to recovery measures or sanctions against those found responsible, in line with the law.
Members and Sacco officials have been urged to cooperate with investigators.
