As lenders prepare to pay its members dividends, troubled Metropolitan Sacco is up in arms with its members after withholding their dividends.
The Sacco, which announced its earnings last week, accused of operating without effective accounting and control systems putting billions of savers’ funds at risk.
The society has also been on the spot amid allegations of risky lending.
“We were supposed to have received our dividends early this month but the Sacco is withholding it. I am considering to withdraw my savings and look for another Sacco to join. We are suffering and yet the dividends are our money,” one of the members who did not want to be named said.
Last year, the Sacco Societies Regulatory Authority investigators 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 investigations followed complaints by members that they could not access salaries or loans when they are channelled through the sacco’s banking system.
The sacco that draws its membership from teachers around the country (formerly Kiambu Teachers Sacco) traced its precarious financial position to December when a high demand for deposit refunds could not be matched by its finances.
The sacco had also been struggling to service loans of Sh5 billion owed two commercial banks.