Deposit-taking Metropolitan National Sacco Ltd has embarked on a raft of reforms as it seeks to boost the earnings of its members.
The sacco had in the past several years been entangled in a series of non-performing bad loans occasioned by risky lending, among other cash-related challenges.
However, the cooperative says the new measures, which kicked off in earnest last year, are already plugging financial loopholes and bolstering its growth.
Last year, the Sacco registered an increase in its asset value to Sh15 billion from Sh13 billion the previous year. Its share capital grew from Sh742 million to Sh755 million in the same period. Its cash reserve also recorded an upward trend.
Chief Executive Officer, Benson Mwangi said the 2019 results show the transformation strategy is working.
The revival plan, he said, is anchored on five pillars— liquidity management, deposit mobilisation, loan book management, operational efficiency and build-up of institutional capital.
Mr Mwangi, whose expertise was cited as key in streamlining and implementing key business strategies to revitalise and steer the sacco in the face of its then declining fortunes, was appointed CEO last year with a brief to return the sacco to its former glory.
“Following the approval of the transformation strategy at the 2019 Annual General Meeting, we have recruited an additional 167 new members and received 2070 membership reinstatements from the previous period. In that period, we have also seen a rise in the number of members wishing to reverse their earlier requests to withdraw their membership,” Mr Mwangi told Smart Company.
Set of reforms
The scheme, registered under the Societies Regulatory Authority (Sasra), currently operates eight branches.
While it is not rosy yet at the Metropolitan National Sacco Ltd with a lot more still demanding to be done to restore the former highly-rated credit and savings cooperative whose membership is drawn from across the country, Mr Mwangi is banking on the new set of reforms to attract more savers and put the firm on sound financial footing.
“We are now embarking on phase two which will involve leveraging on technology to improve on service delivery, rolling out of new products and launching an online banking platform,” he said.
“We appreciate the positive response from our loyal members as we continue to deliver on our promises.”
The sacco, which was registered in 1977 as Kiambu Teachers Sacco and largely catered for teachers in the county, later changed its identity to its current more cosmopolitan name and brought on board members from government ministries, parastatals, Kenya Defence Forces , National Police Service, public and private universities, colleges, academies and the private sector among others.