Mwalimu Sacco Set To Dispose Spire Bank After Years Of Loss-making -

Mwalimu Sacco Set To Dispose Spire Bank After Years Of Loss-making

Spire Bank
Spire Bank. [PHOTO/ COURTESY]

Four suitors are lined up to buy cash strapped Spire Bank from Mwalimu Sacco, following years of loss-making that have depleted its core capital and shareholder funds.

The four entities are set to conclude a due diligence process by the end of the year, which will precede a 100 percent stake cede in case one of the suitors wants to buy the crippled lender.

There is active engagement going on to engage a strategic investor to unlock the bank’s performance. Currently, we have four potential investors and decisions are ongoing at shareholder level to ensure it is completed. hese are private entities with due diligence being undertaken so we can’t disclose the names for confidentiality purposes

said acting Spire Bank managing director Brian Kilonzo.

Read: How Ksh1.7 Billion Withdrawn By Naushad Merali Sank Teachers’ Spire Bank

The lender sank into a Ksh1.2 billion loss for the year ended December 2020 from Ksh472 million a year earlier.

The bank currently has a Ksh1.8 billion hole in the asset base, which threatens to eat into the Ksh4.79 billion customer deposits.

The bank is now operating on the red with a negative core capital of negative Ksh2.63 billion. This means that the bank requires capital injection of Ksh3.63 billion to be compliant to Central Bank of Kenya (CBK) requirements.

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