This archive report was first published on 30 September 2021.
Spire Bank, formerly known as Equatorial Commercial Bank, has been a financial burden for Mwalimu National Sacco since its acquisition in 2015.
On September 30, 2021, the Sacco's delegates will meet to discuss a proposal to sell the bank to a strategic investor, with the Sacco retaining a minority interest.
The bank's financial woes began when its former owner, Naushad Merali, withdrew Sh1.7 billion ($15.74 million) from the bank immediately after selling his stake, triggering panic among customers and further weakening the institution's financial stability.
Mid-2021, the Sacco Societies Regulatory Authority (Sasra) directed the board chairman and chief executive officer to step aside to allow for investigation into the Sacco's business conduct.
Reached for comment on the process, Mwalimu Sacco's acting CEO, Kenneth Odhiambo, declined to comment, stating that the board is determined to protect members' investments.
"After we appraise the delegates of our efforts at the Special Delegates Meeting, we will duly give the public information on the process," he said.
