In a letter dated April 4, signed by TSC CEO Dr Nancy Macharia, directed to clerk of Senate, she said 11,310 teachers’ remittances were stopped while 2,401 teachers were still members of the Sacco as at March 31 2024.
The Third-Party guidelines copy was also attached to help the Senate Committee understand fully on the stand of TSC on the matter raised in a meeting held on March 26 this year.
This information is in pursuant to the request of the Senate Standing Committee on Trade, Industrialization and Tourism, for additional information regarding subscription of teachers to Metropolitan Sacco country wide.
This backdrop comes after the Dr Macharia announced the stoppage of the Metropolitan Sacco deductions for teachers in Bungoma County, when she appeared before the committee in the Senate to shed light on a statement by Bungoma Senator David Wakoli concerning unclear Sacco deductions despite instruction from the Commission to stop remittances.
The senators had requested to know why deductions were directed to a Sacco accused of embezzling KSh12 billion.
The woes of the Sacco started three years ago after some of its members realised that they were unable to make any withdrawals from their savings and also were denied loan facilities despite having active accounts.
The members also complained of the Sacco refusing to refund entire share capital after a member exit, non-functional mobile banking services, lengthy loan approval process and withholding of 50 per cent of members dividends.
The Sacco, which has a membership of about 75,000, most of whom are teachers, issued gross loans amounting to KSh16.7 billion against a total income of KSh.99 billion in the year 2020, according to the Sacco Supervision Annual Report (2020).
Its total assets and deposits stood at KSh16.73 billion and KSh7.64 billion respectively, in the same period.
The Sacco began sliding into financial trouble in 2019 following a surge in bad loans that squeezed its liquidity and ability to meet member withdrawals.
The April 2022 audit also revealed that the Sacco had loaned out KSh7 billion to ghost members as committee members questioned on how millions of shillings were withdrawn from single teller at a Nakuru branch.
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