Teachers Lose Millions After Trusted SACCO Collapse
In a society that regards teachers as beacons of hope, entrusted with the crucial task of molding the minds of future generations, one would expect that their financial well-being and retirement plans would be secure.
However, a disturbing revelation has come to light, exposing the plight of teachers who trusted in a savings scheme that has left them in financial despair.
For Oloo, a retired teacher with 33 years of service, his teaching career was a noble calling. His parents were elated when he joined the teaching profession in 1989, believing that their sacrifices had paid off.
Oloo understood the weight of his responsibility – to provide educational guidance, uplift his community, and secure a better future for generations to come.
With a desire to navigate the challenges of retirement and ensure his children’s education, Oloo believed that joining a savings scheme was the way to go.
In 2011, he took the advice of a colleague and joined the Metropolitan National Sacco. The Sacco appeared welcoming, full of life, and promising lucrative dividends.
However, by 2021, Oloo’s excitement had turned into frustration. The Sacco had not declared dividends for three years, and its financial troubles were becoming evident.
Teachers Lose Millions After Trusted SACCO Collapse
A visit to the Sacco’s office in Kisumu revealed the harsh reality – the Sacco was unable to refund his savings due to financial difficulties. This news shattered Oloo’s dreams, and he found himself grappling with high blood pressure and stress, which drained his monthly pension.
Oloo’s story is not an isolated case. In Rachuonyo North Sub-County, another retired teacher, Paul Omenda, shared a similar fate. He had saved for 16 years but was left with nothing to show for it.
Despite the law requiring the Sacco to refund shares within three months of retirement, Omenda’s efforts to reclaim his savings had been in vain.
The situation escalated when the Commissioner of Cooperatives, David Obonyo, ordered an investigation into the Sacco’s financial troubles in 2022. The probe uncovered a disturbing web of mismanagement orchestrated by the Sacco’s leadership.
The members’ hard-earned savings had been siphoned off, and the Sacco’s books had been manipulated to create a facade of financial health.
What is even more disheartening is that the Sacco Societies Regulatory Authority (SASRA), responsible for regulating Saccos in Kenya, failed to detect the extensive mismanagement.
The Sacco, once boasting KSh 7.6 billion in deposits and Sh. 16.7 billion in assets, had stopped declaring dividends and imposed withdrawal limits. It was unable to process loans, leaving its members in dire straits.
The probe report pointed fingers at the Sacco’s CEO, Francis Ng’ang’a, and the management, recommending a detailed investigation into the loss of KSh 12 billion. The report uncovered questionable land deals, irregular loan disbursements, and the declaration of dividends from member deposits.
In response, the Sacco was placed under a caretaker committee, but the affected teachers were far from satisfied. They formed a group, the Metro Sacco Affiliates Rights, and are now planning peaceful demonstrations to demand the refund of shares and dividends accrued since 2018.
Also Read:Â Teachers Refunded Shares As SACCO Experience Liquidation
While the caretaker committee assures members of its commitment to addressing the issues, the teachers remain vigilant. The situation has prompted the government to enact new regulations to enhance Sacco services, including quicker resolution of customer complaints.
Teachers, who have taken legal action against the Metropolitan National Sacco, find themselves in a distressing situation that highlights the vulnerability of honest public servants to financial misconduct.
In a profession where teachers are revered as the custodians of knowledge and values, it is disheartening to witness the betrayal of trust by an institution meant to secure their financial futures.
The Metropolitan National Sacco scandal serves as a sobering reminder of the importance of transparency, accountability, and regulatory oversight in financial institutions that hold the aspirations of many in their hands.
