Inside the Ksh.14.4 Billion Betrayal: How Metropolitan National Sacco Officials Allegedly Looted Members for Nine Years

Nineteen current and former officials of Metropolitan National Sacco have been arraigned in court over an alleged KSh14.4 billion fraud scheme linked to the management of the Sacco between 2012 and 2021.

The suspects face multiple charges, including conspiracy to defraud contrary to Section 317 of the Penal Code. Prosecutors told the court that the accused allegedly worked together with other individuals not before the court to defraud the Sacco of KSh14,497,677,664 over the nine-year period.

Those charged include Christopher Kahuno Karanja, Samuel Ndungu Muiruri, John Kimani Munyaka, James Kamau Ngugi, Patrick K. Kagwi, Francis Kamau Nganga, Benson Mwangi Nganga, Paul Kaberere, Geofrey Wamae, Duncan Chege, Francis Wachiuru Mbae, George Mwihia, Daniel Lee Kamau, Joseph Gachunga Mwaura, Boniface Muthama, Rosemary Chege, Edward Duncan, Lucy N. Kabiru, and James M. Ngomo.

Investigators further accuse senior officials of unlawfully authorizing the investment of KSh1.01 billion in members’ funds for the purchase of land in Kitengela, Machakos County. Prosecutors argued that the transaction amounted to investment in a non-core business, contrary to provisions of the Co-operative Societies Act.

The charge sheet also details a series of alleged regulatory breaches under the Sacco Societies Act. Prosecutors claim the officials failed to maintain the mandatory 15 per cent liquidity ratio required to protect members’ savings and short-term liabilities.

Authorities further allege that the Sacco failed to establish a credit committee as required by prudential regulations, weakening oversight on loan approvals and credit risk management.

The accused persons are also said to have failed to maintain proper books of accounts reflecting the true financial position of the Sacco, failed to appoint an internal auditor, and approved unsecured loans without adequate collateral.

All 19 officials pleaded not guilty to the charges and were each released on a cash bail of KSh70,000 pending further court proceedings.