A glance at the Cooperatives Tribunal registry reveals huge claims, running into millions, made by members of the now insolvent Metropolitan Savings and Credit Cooperative Society (SACCO), formerly Kiambu Teachers SACCO.
Between February and July this year, the Cooperatives Tribunal has awarded over 36 refund claims sought by members seeking to withdraw membership from Metropolitan SACCO.
In one such case filed against Metropolitan SACCO at the Tribunal in 2023, Joseph Wandera – Member No. 40514, claims in an affidavit, that while he gave a written notice to the SACCO concerning his intention to withdraw membership, Metropolitan refused to refund his deposits, amounting to KSh 157,000.
In yet another suit, Metropolitan SACCO has been ordered to refund Teresia Atieno KSh 351,258.71 deposit plus costs and interest after failing to prove why it had not done it despite her withdrawal notice.
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The Tribunal has also directed that Metropolitan SACCO refunds Patrick Kiama Mugo, a sum of KSh 417,851.57. In court documents, Kiama said he was a member of Metropolitan SACCO and contributed deposits until he withdrew on 22nd April 2024 having made total contribution of KSh 417,851.57/. Despite Metropolitan SACCO acknowledging the withdrawal notice, the Society failed to make the refund.
While Metropolitan is unable to settle refund claims due to crippling financial problems, triggered by systematic theft by the its past directors that led to panic withdrawals and a run on its bank accounts, the tribunal has insisted that the Society must still honour its obligations to members, as long as it is still in operation.
Metropolitan SACCO requires an injection of up to KSh 7 billion to get back on its feet, according to Commissioner for Cooperatives Development David Obonyo.
The once vibrant Metropolitan SACCO, which had over 100,000 members, lost KSh 15 billion worth of Assets while KSh 12 billion in cash was stolen by unknown individuals.
A government-ordered forensic audit revealed that KSh 7 billion in loans was disbursed to ghost members as KSh 176.9 million disappeared from Thika, Kiambu and Kisumu branches. The SACCO’s financial mess has been attributed to a well-organised network that siphoned millions of shillings belonging to members, under the watch of regulators.
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Hi, i need help. I applied for withdrawal from Metropolitan sacco but till today, i have not been paid my shares.