This archive report was first published on 13 June 2020.
On June 13, 2020, Metropolitan National Sacco was on the path to recovery after a major setback in 2018/2019. The Deposit Taking Sacco suffered from loans surpassing savings, delayed salary and loan processing, and non-performing loans (NPLs) amounting to over Sh1.2 billion.
Cooperative Bank of Kenya intervened, helping the Sacco through Co-op Consultancy to build capacity for long-term sustainability and restructure funding requirements.
Following the approval of the transformation strategy at the 2019 Annual General Meeting (AGM), the Sacco reported a 6% growth in deposits to Sh7.32 billion, recovered over Sh110 million of NPLs, attracted new members, and appointed a new Chief Executive Officer (CEO), Benson Mwangi.
CEO Benson Mwangi stated, “Following the approval of the transformation strategy at the 2019 Annual General Meeting (AGM), we have recruited an additional 167 new members and received 2070 membership reinstatements from the previous period. In that period, we have also seen a rise in the number of members wishing to reverse their earlier requests to withdraw their membership”.
Metropolitan National Sacco is now embarking on the second phase of its transformation strategy, leveraging technology to improve service delivery, rolling out new products, and launching an online banking platform.
The new technology-driven strategy has reduced the Sacco’s costs of doing business, with an overall cost reduction of Sh96 million, mainly driven by savings in financial and administrative expenses.
