NAIROBI, Kenya, Sep 2 – Metropolitan National Sacco Society has approved a forensic audit after revelations of an untraceable loan book asset worth Sh15 billion and a negative equity position, raising concerns about the Sacco’s financial stability.
The decision was reached during the Sacco’s 47th Annual General Meeting (AGM) held virtually on August 30, 2025, where members also endorsed the appointment of independent external auditors for the financial year ending December 31, 2024.
The board disclosed that despite achieving profitability in 2023 for the first time in over a decade through cost-cutting and expense reductions, challenges persisted due to insufficient liquidity, loan defaults, and negative member funds. The final audited statements showed a negative equity of Sh12.3 billion.
Supervisory board recommendations included developing a realistic work plan, stricter credit policies, and enhanced member engagement through social media platforms. Stakeholders were urged to support a revival strategy focusing on recovering lost funds, activating non-performing loan portfolios, and strengthening governance structures.
Management further emphasized the need for technological upgrades, improved internal controls, and stronger compliance measures to ensure long-term sustainability.
