The Teachers Service Commission (TSC) has revealed the number of teachers whose remittances to Metropolitan Sacco have been stopped and those who are still active members of the Sacco.
Through a letter dated April 4, 2024 directed to clerk of Senate signed by the CEO Dr Nancy Macharia, 11,310 teachers’ remittances have been stopped while 2,401 are still members of the Metropolitan Sacco as at March 31, 2024.
The Third-Party Guidelines copy was also attached to help the Senate committee understand fully the stand of TSC on the matter raised in a meeting which was held on March 26, 2024.
This information is pursuant to the request of the Senate standing committee on Trade, Industrialization and Tourism for additional information regarding subscription of teachers to Metropolitan Sacco countrywide.
This comes after the CEO Dr Nancy Macharia announced the stoppage of the Metropolitan Sacco deductions for teacher in Bungoma County when she appeared before the Senate committee to shed light on a statement by Bungoma Senator David Wakoli concerning unclear Sacco deductions despite instruction from the commission for stoppage.
The Senators had wanted to know why remittances were made despite the Sacco being accused of embezzling Ksh12 billion.
The woes of the Metropolitan Sacco started three years ago after some of its members realized that they were unable to make any withdrawals from their savings and also were denied loan facilities despite having active accounts.
The members also complained of the Sacco refusing to refund entire share capital after a member exit, non-functional mobile banking services, lengthy loan approval processes and withholding of 50 per cent of members’ dividends.
The Sacco, which has a membership of about 75,000, majority of whom are teachers, issued gross loans amounting to Ksh16.7 billion against a total income of Ksh1.99 billion in the year 2020, according to the Sacco Supervision Annual Report (2020).
Its total assets and deposits stood at Ksh16.73 billion and Ksh7.64 billion respectively in the same period.
The Sacco began sliding into financial trouble in 2019 following a surge in bad loans that squeezed its liquidity and ability to meet member withdrawals.
The April 2022 audit also revealed that the Sacco had loaned out Ksh7 billion to ghost members as committee members questioned how millions of shillings were withdrawn from a single teller at a Nakuru branch.
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By Brian Ndigo
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