Why Metropolitan Sacco Members Are Rushing to Withdraw Their Savings

Hello and welcome to the Money News Roundup Newsletter, where we break down the growing savings withdrawal crisis at Metropolitan Sacco amid an alleged Ksh14 billion fraud case. We also look at a new proposal seeking to introduce standardised uniforms in all public schools.

Why Metropolitan Sacco Members Are Rushing to Withdraw Their Savings

Metropolitan Sacco is facing mounting liquidity pressure as increasing numbers of members seek to withdraw their savings amid fears over the institution’s financial stability.

As reported by the Business Daily, the troubled sacco, which reported untraceable loans worth Ksh50 billion and negative equity of Ksh12 billion, has been ordered by the Co-operative Tribunal to refund multiple members alongside interest and legal costs.

Regulatory filings show the sacco closed 2024 with Ksh7.41 billion in deposits and a Ksh17.2 billion loan book with a default rate of 98.99%.

Between January and April this year, the tribunal issued refund orders in favour of 33 members, adding to over 150 rulings made since 2024.

The crisis deepened after 19 former officials were charged over an alleged Ksh14.49 billion fraud linked to the sacco’s operations.

As reported by Citizen Digital, the 19 former officials face charges of conspiracy to defraud the sacco between 2012 and 2021, alongside accusations of failing to maintain proper books of accounts and violating Sacco regulations.

Prosecutors also accused some of the officials of unlawfully investing Ksh1.01 billion in land purchases in Kitengela, contrary to co-operative laws.

Metropolitan Sacco was declared technically insolvent last year, with reports revealing untraceable loans worth Ksh50 billion and negative shareholder equity of Ksh12 billion.

Also Read: SACCOs With the Highest Dividends in 2026 [as Announced so Far]

Matatu Workers Issue Strike Notice

The Matatu Workers Union (MWU) has threatened to strike unless workers’ wages are prioritised from daily collections before fuel and other operating costs are deducted.

As reported by Kenyans.co.ke, MWU Secretary General Maurice Oduor accused matatu owners and the government of sidelining workers in discussions surrounding the ongoing fuel crisis.

The union noted that drivers and conductors continue to shoulder the burden of rising fuel costs and stagnant earnings. Currently, matatu owners take fixed daily remittances while crews cover fuel and other expenses from the remaining collections.

The workers are now demanding a review of the revenue-sharing model, insisting that wages should be paid first before other operational expenses are deducted.

The union did not give specific timelines on when the notice will lapse.

Education Stakeholders Propose Standard School Uniforms 

Education stakeholders have proposed introducing standardised school uniforms across all public schools, with institutions maintaining their identity through customised badges.

As reported by the Standard, the proposal emerged during the Naivasha Education Conference as part of wider reforms targeting CBC. Stakeholders said the move would reduce the financial burden on parents and promote equity among learners.

The conference also proposed integrating primary and Junior Secondary Schools under one administration, supported by two deputy headteachers overseeing each section separately.

In addition, stakeholders recommended capping school uniform prices, replacing the term “teacher interns” with “teachers on contract,” and absorbing contract teachers into permanent and pensionable terms after two years.

The reforms now await consideration by education authorities.

CA to Fine Telcos for Dropped Calls and Poor Internet

Mobile phone operators could soon face penalties and business sanctions for dropped calls and poor internet under new rules proposed by the Communications Authority of Kenya (CA).

As reported by the Business Daily, the regulator wants to raise the minimum quality compliance score for telecom firms from 80% to 90%, with quarterly penalties for operators that fail to meet the standards.

The CA will assess firms based on dropped calls, internet speeds, failed messages, latency, and customer experience.

Safaricom scored 89.72% in the latest assessment, Airtel Kenya recorded 81.14%, while Telkom Kenya lagged behind at 52.76%, below the regulator’s threshold.

Govt to Issue Ksh100B Green Bonds for Agriculture

As reported by Bloomberg, the government plans to issue Ksh100 billion ($772 million) worth of green bonds by the end of next year to support agriculture, climate resilience, and food security projects.

According to the Agriculture Ministry, the funds will finance sustainable initiatives such as solar-powered cold storage, regenerative farming, parametric insurance, and climate adaptation projects.

The government plans to use carbon credit revenues to back the bonds, targeting institutional investors and diaspora funds. The bonds will have maturities of between five and 10 years, with interest rates ranging from 4% to 6%. Green bonds are usually tax-free.

KRA Set for Ksh41.5 Billion Tax Windfall From EABL Stake Sale

The Kenya Revenue Authority (KRA) is set to receive an estimated Ksh41.5 billion in capital gains tax from Diageo Plc’s sale of its 65% stake in East African Breweries Plc (EABL) to Japan’s Asahi Group Holdings.

As reported by the Business Daily, the deal is valued at Ksh307 billion, with Diageo expected to make a net gain of about Ksh277 billion after deducting its initial Ksh30 billion investment made over 26 years ago.

Because the transaction is being conducted privately rather than through the Nairobi Securities Exchange (NSE), it will attract a 15% capital gains tax.

The deal marks one of the largest tax-generating corporate transactions in Kenya and could significantly boost Treasury revenues as the government struggles to meet growing expenditure needs.

Flower Stakeholders Warn of Job Losses as Air Freight Costs Surge

Kenya’s flower industry has warned of massive losses and possible job cuts following a sharp rise in air freight costs.

As reported by Eastleigh Voice, industry players said shipping costs have increased from Ksh402 ($3.10) per kilogram to nearly Ksh648 ($5.00) per kilogram, pushing logistics expenses to almost 60% of export costs during peak periods.

The Kenya Flower Council estimates that Ksh518.36 million ($4 million) worth of flower exports are at risk weekly, with some farms reporting revenue drops of up to 75% due to shipment delays and rising input costs.

Stakeholders warned that prolonged disruptions could trigger losses exceeding Ksh1.94 billion ($15 million) monthly and threaten 50,000 jobs.