One of Kenya’s largest financial scandals in recent months has emerged from Metropolitan National Sacco, where current and former officials are facing charges linked to an alleged KSh 14.4 billion fraud scheme.
The case, which is now before the courts, has attracted national attention due to the enormous amount of money involved and concerns over the safety of members’ savings within cooperative societies.
According to investigators, the alleged scheme is said to have operated between 2012 and 2021. Prosecutors claim that officials manipulated loan records, approved fictitious loans, and engaged in transactions that resulted in massive losses to the Sacco. Court documents indicate that the alleged losses amounted to approximately KSh 14.4 billion.
The Directorate of Criminal Investigations (DCI) says investigations began after concerns were raised by the Sacco Societies Regulatory Authority (SASRA). Detectives later uncovered what they described as a complex network of financial irregularities involving loan disbursements and investment transactions.
Investigators further allege that more than KSh 13 billion was lost through fictitious loan schemes, while hundreds of millions of shillings were allegedly diverted through questionable investment arrangements linked to land transactions in Kitengela.
Nineteen current and former officials have since been charged with various offences, including conspiracy to defraud, fraudulent accounting, obtaining credit by false pretences, and failure to maintain proper financial records. All the accused persons have denied the charges and have been released on bond pending further court proceedings.
The case has reignited debate about governance standards within Kenya’s Sacco movement, a sector that manages billions of shillings belonging to millions of members across the country. Financial experts argue that stronger oversight, transparency, and independent audits are necessary to protect members’ savings and restore public confidence.
As the legal process continues, many Sacco members are closely watching the proceedings, hoping that the courts will establish the truth and ensure accountability for any wrongdoing that may have occurred.
The Metropolitan National Sacco case is expected to become one of the most significant tests of financial accountability within Kenya’s cooperative sector in recent years.
