Metropolitan Sacco on the spot again as teachers protest
The sacco traces its precarious financial position to December when high demand for deposit refunds could not be matched by its finances. FILE PHOTO | NMG
Metropolitan National Sacco is on the spot again after a section of teachers in Kisumu on Monday alleged dividend and unexplained salary cuts.
The teachers protested for the better part of the morning as they lined up to receive their money from a single teller at the sacco's Kisumu office at Swan Centre.
Mr Joash Okeyo claimed that the sacco paid them less than four per cent that had allegedly been agreed during the last Annual General Meeting.
Metropolitan National Sacco is on the spot again after a section of teachers in Kisumu on Monday alleged dividend and unexplained salary cuts.
The teachers protested for the better part of the morning as they lined up to receive their money from a single teller at the sacco's Kisumu office at Swan Centre.
Mr Joash Okeyo claimed that the sacco paid them less than four per cent that had allegedly been agreed during the last Annual General Meeting.
“Last year I received Sh15,000. This year I got only Sh7,000. I am puzzled and do not understand exactly what is happening. The management is not giving us any explanation,” Mr Okeyo said.
Mrs Esther Okello complained that they were forced to pay an additional Sh500 to activate their accounts.
“The management is saying that our accounts are inactive. Now we have to pay Sh500 yet they deducted Sh200 to activate the accounts,” said Mrs Okello. “We do not know why the sacco is not giving an explanation for poor service. We get half of our salaries on monthly basis.”
Last year, investigators from the Sacco Societies Regulatory Authority (Sasra) raided Metropolitan National Sacco to establish its stability following an ambitious expansion that has left it short of money to meet the needs of its more than 100,000 members.
The investigation followed complaints by members that they could not access their salaries or loans when they are channelled through the sacco’s banking system.
When they did, it was restricted to an amount determined by the management.
The sacco traces its precarious financial position to December when high demand for deposit refunds could not be matched by its finances.
It blames this on delayed remittances by some companies and counties.
The sacco has also been struggling to service loans of Sh5 billion that it owes to two commercial banks.
Its Kisumu branch manager, Ely Ochieng, declined to comment on the troubles facing the society.
He said he would only comment on the issue after consultation with the bosses in Nairobi, the headquarters.
The Metropolitan National Sacco mostly serves teachers employed by the Teachers Service Commission.
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