This archive report was first published on 16 July 2019.
On July 16, 2019, Co-op Bank solidified its strategic partnership with Metropolitan National Sacco, one of the largest Saccos in Kenya's co-operative movement, to improve service delivery and operational efficiency.
As part of the partnership, Co-op Bank is offering corporate advisory services through its subsidiary, Co-op Consultancy, to build capacity for long-term sustainability.
Under a Corporate Restructure Program, the Bank restructured the Sacco's funding requirements to better manage members' monthly loan demands and overall liquidity flows, aiming for a complete turnaround of the Sacco.
Metropolitan National Sacco has a membership of over 100,000, an assets base of KSh 13.6 billion, and runs eight branches across the country.
Speaking during the signing of the restructuring agreement, Sacco Chairman Christopher Karanja commended the lender for its timely intervention, stating, "We thank Co-operative Bank for coming to our great support at such a critical moment. The recommendations and measures that have so far been put in place will certainly get the Sacco to new heights. The corporate restructure by the Bank is the best thing that has happened to the Sacco in a long time. We will now boldly and seamlessly offer services to our members."
Director of Co-operatives Banking Division at Co-operative Bank, Vincent Marangu, said the bank has a strategic interest in the turn-around and long-term growth of Metropolitan National Sacco, adding that the corporate restructuring deal will ensure the Sacco has adequate working capital to support members and improve operational efficiency. The corporate restructuring program commenced in July 2019, and the bank has re-launched the Saccolink debit card, Sacco Personal Cheques, and trade finance partnership to increase the Sacco's revenue base through its front office service activity (FOSA).
