Ksh15 Billion of Our Members' Savings Has Gone Missing - Metropolitan Sacco

Metropolitan Sacco officials on Thursday, August 15, admitted that more than Ksh15 billion of the Sacco members’ savings had gone missing between 2021 and 2023.

The current officials accused their predecessors for the mess that has affected over 100,000 members who had kept their savings there. 

The new Sacco leadership called on the Directorate of Criminal Investigations (DCI) to act swiftly and apprehend the former officials. 

Most of the money was lost by creating fictitious loans to non-existent members. The loans advanced are reported to have been withdrawn by Sacco officials who have since been removed from office. 

“Our loan book was reported to have been Ksh17 billion, but we have found it is Ksh1 billion. It means that the money we have today is only current money and we need to find out what happened and make the right decisions,”Esther Kamau, the Interim Chairperson stated. 
A recent investigation by a Senate committee led by Busia Senator Okiyah Motatah unearthed other forms of fraud used to divert members’ Sacco savings.  

About Ksh7.2 billion went missing after the former Board of Metropolitan National Sacco created fictitious profits and paid a dividend to members using their actual deposits.

Read also: EPRA’s New Fuel Prices Raise Questions on Ruling Nullifying Finance Act 2023

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The Sacco’s poor financial status has seen some members exit with the Teachers’ Service Commission (TSC) reporting that over 3,000 members resigned from the Sacco in 2023 alone. 

Metropolitan Sacco was initially founded as a teachers’ Sacco but in recent years, begun taking new members from across different professions.

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Kenya Aviation Authority Workers Union Issue a Strike Notice

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The Kenya Airports Authority (KAA) is on high alert following a notice of a possible strike by aviation workers, which poses a major threat to airport operations across the country.

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Read also: What the Nullification of Finance Act 2023 Means for the Housing Levy & Other Tax Laws

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The threat of a strike originates from a disputed agreement between the Kenyan government and India’s Adani Airport Holdings, which is poised to oversee the development of Kenya’s largest airport. The Kenya Aviation Workers Union (KAWU), which represents airport employees, contends that the deal will result in job losses and an increase in non-Kenyan workers.

In the event that the strike continues, the Authority has declared that plans are ready to minimize any disruptions that may arise.

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High Court Ruling on Government Move to Raise Road Maintenance Levy

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The High Court has prevented the government from raising the controversial Road Maintenance Levy while awaiting the hearing and determination  of a petition lodged by a resident of Mombasa.

The Road Maintenance Levy Fund Order, 2024, raised the levy from Ksh18 per litre to Ksh25, despite public criticism of the new tax.

"That pending the hearing of the Notice of Motion dated 2nd August 2024 inter - partes, a conservatory order is hereby issued, restraining the respondents, either jointly and or severally, whether by themselves, their officers, agents, employees or other person or entity acting under respondents' instructions, from implementing and enforcing the Road Maintenance Levy Fund ( Imposition) Order 2024,” said Justice Gregory Mutai.

Mr. George Odhiambo Juma, a taxi driver from Mombasa, challenged this decision, claiming that the increase was implemented without sufficient public consultation.

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