The Central Bank of Kenya has initiated steps to close Spire Bank amid persistent financial instability, following years of declining performance after its 2016 acquisition by Mwalimu National SACCO. The bank, which has not released positive financial results since the sale, faces mounting pressure from regulators and lawmakers.
Central Bank Governor Patrick Njoroge ordered preparations for Spire's closure in mid-June after repeated failures to secure new investment. Parliamentary inquiries into the bank's viability intensified in May, with lawmakers questioning director Brian Kilonzo about its financial condition. Mwalimu National SACCO, which owns 75% of Spire, has struggled to find buyers despite reaching out to major banks like Equity and Kenya Commercial Bank.
The bank's troubles date back to 2016 when former owner Naushad Merali, head of Sameer Group, sold 75% of Spire to Mwalimu National. Merali later withdrew a fifth of the bank's funds days after the deal, triggering customer withdrawals. He sold his remaining 25% stake in November 2020 before his death on July 3, 2021.
