Spire Bank branch
The management of the struggling Spire Bank, a teachers’ owned financial institution is in panic after the Sacco Societies Regulatory Authority (SASRA) cracked the whip on its sister firm. SASRA suspended the CEO and Board Chairperson of Mwalimu National Sacco, arguably one of Kenya’s largest Sacco, over fraud.
In December 2020, Mwalimu National Sacco (MNS) fully acquired Spire Bank from businessman Naushad Merali at a tune of Sh2.4 billion, taking up a 75 stake in the lender.
https://nyakundireport.com/sasra-suspends-ceo-and-board-chairperson-of-mwalimu-sacco/
Spire Bank (formerly Equaorial Commercial Bank) has struggled since acquisition by Mwalimu National Sacco. Teachers were lied to into buying a collapsing entity from the rogue Merali of Sameer Group.
Merali, a known shady businessman in Nairobi, later withdrew about Sh1.7 billion from the bank further denting its ability to stay afloat.
In the financial year ending in December 2020, Spire Bank returned a Ksh.1.3 billion loss, a loss three times wider than Ksh.472 million negative earnings in 2019.
https://nyakundireport.com/the-questionable-wealth-dangerous-maneuvers-of-a-tsc-auditor/
Interest expenses by the bank now topple earnings from lending activities while loan defaults at the financial institution are now equal to the bank’s entire loan book.
Moreover, the bank stares at the wrath of the Central Bank of Kenya (CBK) with its capital and liquidity ratio falling further in breach of regulatory provisions.
The bank has ‘eaten’ into Teachers’ savings.
With acquisition of Spire Bank, the destruction of teachers’ in Kenya is almost complete.
KNUT has been diluted by other Unions such as KUPPET and a woman led union Kenya Women Teacher’s Association (KEWOTA), which steals (takes forcefully) deductions from female teachers who have not signed up to it.
In the end then, is this the next bank to go into receivership?
Get out before it is too late
https://nyakundireport.com/be-wary-of-attempts-to-sabotage-knut/