Metropolitan Sacco has reorganised its management as it starts implementing its turnaround plan.
The Sacco, one of the largest in the country and among the pioneers of the deposit-taking model, hopes to use the new plan to get back on solid footing after high instances of bad debts and liquidity problems threatened to sink it.
The Sacco yesterday unveiled a new chief executive, Benson Mwangi, whom it said would steer it through the growth plan.
Mr Mwangi had been serving as the Sacco’s deputy chief executive.
The Metropolitan board said in a statement his expertise and solid track record would be critical in driving the comprehensive transformation programme that the Sacco is presently undertaking.
At the same time, the board announced the retirement of Francis Ng’ang’a as chief executive. Metropolitan in July inked a deal with Co-operative Bank aimed at ensuring that it has adequate working capital.
The board chairman Christopher Karanja also announced the appointment of Cyrus Kariamwere as the deputy chief executive and head of business development.
“The board is in the process of reviewing and recruiting for other key senior management roles with a view of enhancing and strengthening the Sacco operations as well as enriching service delivery,” said Karanja.
Metropolitan Sacco ran into headwinds earlier this year after bad loans soared, squeezing its liquidity and ability to meet member withdrawals.
It has deposits of approximately Sh6.9 billion and Sh700 million member shares.
However, the outstanding loans are worth Sh12.8 billion.
About eight per cent of the Sacco’s outstanding loans are in default, sending it into financial crisis. It was unable to meet members’ loan demands, with a good number having withdrawn their savings.