Editorials

Spire Bank buyout by Equity is timely

spire

Spire bank branch on Koinange Street in Nairobi. FILE PHOTO | NMG

The revelation that Spire Bank has finally found a suitor should be good news coming at a time when teachers have looking for a way to cut their losses from the lender that is in a financial crisis.

The proposed sale of the bank to Equity Group should therefore be completed transparently to secure the interests of the teachers and financial sector at large.

Mwalimu Sacco has bled billions to keep the bank afloat since teachers have been forced to pump more money as they sought a buyer.

The sacco has been supporting Spire Bank with funds after the lender accumulated losses of Sh9 billion including a Sh3.4 billion conversion of Teacher’s deposits into equity.

The CBK is midwifing the deal that would see Teachers pay Equity Bank Sh1.7 billion to take the loss-making bank off their hands.

The Sacco, the regulators and Equity Bank must ensure Teachers get the best out of the deal given the past history where teachers ended up receiving the short end of the stick.

Mwalimu should also review how it ended up with such a bad investment that has strained Kenya’s largest Sacco and blotted its investment credentials, and if possible hold those liable personally responsible for the mess.