Metropolitan Sacco fails all capital adequacy ratios
According to the report, the Sacco recorded a core capital-to-total assets ratio of -1,013.78 percent in 2025, down from -1,172.81 percent in 2024, against a regulatory minimum of 10 percent.
Nairobi, Kenya – Metropolitan National Sacco Society fell short of all three capital adequacy ratios required by regulators, placing the institution under considerable financial strain, according to the most recent SACCO Supervision Annual Report released by the Sacco Societies Regulatory Authority (SASRA). The report highlighted a core capital-to-total assets ratio for Metropolitan of -1,013.78 percent in 2025, a steep decline from the previous year's -1,172.81 percent, while the required minimum stands at a measly 10 percent.
Meanwhile, the core capital-to-total deposits ratio stood at a staggering -160.49 percent in 2025, down from -169.66 percent in 2024, far below the minimum eight percent threshold. The third ratio, institutional capital-to-total assets, came in at -1,104.32 percent in 2025, versus -1,275.41 percent in 2024, also underperforming the mandated eight percent minimum.
Metropolitan's troubles extend beyond capital adequacy, with its external borrowing-to-total-assets ratio escalating to 454.16 percent in 2025, up from 536.14 percent in 2024, surpassing the regulatory cap of 25 percent. The Sacco's struggles stem from a history of mismanagement by former top executives, leading to significant financial losses for the institution.
Despite these challenges, the SASRA report revealed a brighter picture for the broader SACCO sector, with the core capital-to-total assets ratio improving to 19.53 percent in 2025 from 17.28 percent in 2024, and institutional capital-to-total assets rising to 12.44 percent. SASRA officials noted that regulated SACCOs demonstrated operational stability based on key financial indicators, including capital, liquidity, and asset quality.
The five largest DT-Saccos by total assets for 2025 included Mwalimu National DT, Stima DT, Kenya National Police DT, Harambee DT, and Tower, all of which met or exceeded the prescribed capital-adequacy ratios.
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