(NAIROBI, KENYA) – Kenya has ordered an inquiry into the financial health and governance structures of the NHIF Sacco, following a warning over the possible liquidation of the troubled Metropolitan National Sacco over its poor cash position.
Commissioner for Co-operatives David Obonyo told The Daily Handle on 22nd September the State intervention into the operations of the NHIF Sacco is meant to establish its true state of financial affairs and governance practices after its membership was broken up following the replacement of the National Health Insurance Fund (NHIF) by the Social Health Authority (SHA) under the Social Health Insurance Act.
“This is a sacco that has been there for a long time but it has some small problems. You know NHIF was disbanded and there is another company (employer) so the officials wanted to set the records straight. I think there are a lot of loans out there and that is what we want to ascertain,” said Obonyo.
“This was a sacco for NHIF staff but when the NHIF was disbanded, a number of them were dispatched to various government offices, so we no longer have NHIF and SHA started on a new footing. So the membership disintegrated, and now together with natural attrition where some people might have retired, others have died there is now no common check off and that is what they want us to help them with. Actually they (sacco officials) are the ones who requested the inquiry, not even us.”
The Commissioner for Co-operatives, through Gazette Notice No 15183, has appointed assistant director for Co-operative Audit Silas Okoth Dede and senior Co-operative officer Grace Mwihaki Gichuhi to carry out the inquiry into the NHIF Sacco for 12 days.
The gazette notice is dated 9th September, but was published on 18th September, 2026. The inquiry will look into the sacco’s by laws, working and financial conditions, membership and governance structures, the conduct of the management committee, and past or present members or officers of NHIF Sacco Society Limited.
Kenyan saccos collectively hold over KES884 billion ($6.84 billion / GBP5.06 billion) in member deposits and managed an asset base exceeding KES1.24 trillion ($9.60 billion / GBP7.10 billion) as at 30th June, 2026.
The latest sacco inquiry comes just a month after the government said it was considering winding up Metropolitan Sacco after a fresh inquiry found little improvement in the institution’s financial health over the past three years.
Obonyo said Metropolitan Sacco was insolvent and could be wound up if efforts to secure a merger or acquisition failed.