Co-operatives Cabinet Secretary Wycliffe Oparanya has confirmed ongoing recovery measures targeting the troubled Metropolitan National SACCO, following reports that over 100,000 members may have lost approximately Ksh15 billion in savings.

Speaking before the Senate Trade Committee on Tuesday, May 13, 2026, Oparanya said the government is deploying administrative, legal, and investigative mechanisms aimed at tracing and recovering the funds, while also working to stabilise the SACCO and restore member confidence.

The CS revealed that investigations by the Directorate of Criminal Investigations (DCI) were ongoing, with surcharge notices already issued against affected parties.

“On Metropolitan National SACCO, recovery efforts remain active through administrative, judicial and investigative channels,” Oparanya told the senators.

“Investigations by the DCI are ongoing, surcharges have been issued against affected parties, and related matters before the Co-operative Tribunal are being pursued in accordance with the law.”

The scandal at Metropolitan National SACCO has become one of the biggest financial crises ever witnessed in the country’s SACCO sector.

Between 2021 and 2023, more than 100,000 members, largely teachers and civil servants, are reported to have been unable to access their savings after the institution encountered severe financial difficulties.

A 2024 audit subsequently revealed large-scale fraud estimated at close to Ksh15 billion, reported to be involving a network of both former and serving senior staff alongside board directors.

The crisis first surfaced about five years ago when members started reporting significant delays in withdrawing their deposits. As dissatisfaction increased, members pushed for accountability, leading to formal investigations into the SACCO’s financial management.

The Cabinet Secretary also briefed the committee on recovery efforts at the Kenya Union of Savings and Credit Cooperatives (KUSCCO), which has similarly struggled with financial instability in recent years.

He noted that progress had been made following forensic audits and reconstruction of accounts at KUSCCO.

According to Oparanya, the recovery programme has included governance reforms, verification of claims, cost rationalisation, asset recovery, debt restructuring, legal action and partial refunds to SACCOs and members.

KUSCCO audits

“On KUSCCO, the recovery and stabilisation programme is ongoing following the forensic audit and reconstruction of accounts,” Oparanya told the Committee.

“Although the recovery journey is complex, progress has been made through governance reforms, verification of claims, cost rationalisation, asset recovery, debt restructuring, legal action, and partial refunds.”

Beyond the SACCO scandals, the CS announced that the government is implementing sweeping SACCO reforms aimed at preventing similar collapses in future.

Oparanya disclosed that the Ministry is advancing legal, policy and institutional reforms anchored on the National Co-operative Policy and the Co-operatives Bill of 2024.

The proposed reforms are expected to strengthen supervision within the SACCO sector, improve governance and enhance member protection.