Metropolitan Sacco CEO exits in shakeup

Troubled Metropolitan Sacco’s chief executive Francis Ng’ang’a has exited in a managerial shake-up that signals more departures at the giant financial institution.

The sacco, which draws membership from teachers around the country, last month contracted the consultancy arm of Co-operative Bank of Kenya to restructure its operations.

Metropolitan chairman Christopher Karanja Tuesday said Mr Ng’ang’a who has served the Sacco for over 30 years will be replaced by Benson Mwangi, formerly his deputy.

Mr Mwangi will now be deputised by Cyrus Kariamwere who has been tapped from Co-op Bank’s sacco banking division.

“He will provide key support to the chief executive officer in executing the restructuring and transformation programme and in driving key business strategies to revitalise and steer the Sacco to new heights,” he said.

Mr Karanja said more changes will be implemented affecting senior managers to boost the sacco’s operations.

“The board is in the process of reviewing and recruiting for other key senior management roles with a view of enhancing and strengthening the Sacco operations as well as enriching service delivery,” he said.

Last year, investigators from the Sacco Societies Regulatory Authority (Sasra) raided the sacco to establish its stability following an ambitious expansion that left it short of money to meet the needs of its more than 100,000 members.

The probe followed complaints by members that they could not access their salaries or loans when channeled through its banking system.

The Sacco (formerly Kiambu Teachers Sacco) traced its precarious financial position to December when high demand for deposit refunds could not be matched by its finances.

It has also been struggling to service loans of Sh5 billion that it owes two commercial banks.

The sacco is one of the largest in Kenya’s 15 million-member co-operative movement with an asset base of Sh13.6 billion. It runs eight branches spread across the country.