This archive report was first published on 10 January 2022.
Published on January 10, 2022, Mwalimu Sacco has taken a significant step to return Spire Bank to profitability by converting its deposits into share capital worth Sh3.4 billion.
The move, which is aimed at enhancing the bank's solvency and attracting potential investors, has seen the Sacco increase its authorized share capital of Spire Bank from Sh5.77 billion to Sh6.45 billion.
Shareholders have converted deposits equal to Sh1.7 billion since the acquisition in 2015, and the enhanced capital is expected to make the bank attractive to potential buyers.
The conversion of deposits to equity is part of the strategic initiatives pursued by Spire Bank to turn around its business.
Mwalimu National Sacco, the largest cooperative in Kenya by assets, acquired Spire Bank from the late businessman Naushad Merali in 2015, with the aim of gaining a foothold in the commercial banking market.
