NAIROBI, Kenya, Sept 28 – Metropolitan National Sacco Society breached all three statutory capital adequacy ratios, exposing the institution to significant financial pressure, according to the latest SACCO Supervision Annual Report by the Sacco Societies Regulatory Authority (SASRA).

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.

Its core capital-to-total deposits ratio stood at -160.49 percent, compared with -169.66 percent in 2024, falling far below the required minimum of eight percent.

The third measure, institutional capital-to-total assets, was -1,104.32 percent in 2025, compared with -1,275.41 percent in 2024, against a minimum requirement of eight percent.

Likewise, the Sacco’s weaknesses extend beyond capital adequacy with its external borrowing-to-total-assets ratio surging to 454.16 percent in 2025 from 536.14 percent in 2024, against a maximum regulatory limit of 25 percent.

This comes after the Sacco was declared technically insolvent over mismanagement of the institution by former top management, which resulted in losses of billions of shillings.

In contrast, the SASRA report shows that the Sacco sector recorded an improvement in its core capital-to-total assets ratio to 19.53 percent in 2025 from 17.28 percent in 2024, while institutional capital-to-total assets rose to 12.44 percent.

“The regulated SACCOs exhibited stability in their operations as depicted by key parameters of financial soundness indicators including capital, liquidity, and asset quality.”

“The core capital to total asset ratio measures the Regulated SACCOs financial strength and ability to absorb losses.”

Th five largest DT-Saccos by total assets were Mwalimu National DT, Stima DT, Kenya National Police DT, Harambee DT and Tower.

All five recorded capital-adequacy ratios above the prescribed minimums in 2025.