Sharp Daily
No Result
View All Result
Monday, June 2, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

Equity Bank Agrees To Buy Cash-strapped Spire Bank

Editor SharpDaily by Editor SharpDaily
September 13, 2022
in Investments
Reading Time: 2 mins read
Spire Bank

[Photo/ Courtesy]

Equity Bank has agreed to buy struggling Spire Bank, which has been operating in the red in the last couple of years. The bank is running on an asset base of Ksh900 million against liability of Ksh1.3 billion.

Spire Bank, formerly known as Equatorial Commercial Bank (ECB), is owned by Mwalimu Sacco.

In an operation dubbed Project Gamma, it is reported that Equity has already concluded negotiations to acquire the teachers-owned lender for an undisclosed amount.

“Project Gama was approved after a very long meeting on Thursday. Equity Bank is expected to sign the deal around midday Monday,” a source told a local daily.

RELATEDPOSTS

Lessons from Equity Bank’s M-Pesa scandal

May 22, 2025

Equity Bank lowers interest rates for third time in six months

February 13, 2025

Read: Spire Bank: MPs Unearth More Mess For The Teachers’ Bank

The buyout will see Mwalimu Sacco bleed an extra Ksh1.3 billion in a bid to cover employee costs, claims and litigations, in addition to the Ksh400 million difference between the current assets and liabilities.

According to a report by the National Assembly released early this year, the troubled lender has been surviving on emergency loans from the Central Bank of Kenya (CBK), commonly known as the reverse repo facility.

“In order to mitigate its liquidity constraints, the bank has been borrowing from the Central Bank of Kenya through the reverse repo to stabilise its operations” Mwalimu National Sacoo chief executive officer Kenneth Odhiambo said in a submission to the committee.

Spire’s Bank’s repo balance was Ksh1.3 billion and the lender’s position at 8.91 percent against a statutory requirement of 20 percent as at December 31 last year.

Read: Ecobank Slapped With Regulatory Action For Breaching Forex Rules

Mwalimu Sacco, which owns a 75 percent stake, has been supporting the lender by converting deposits into equity or share capital and daily liquidity injection.

Mwalimu Sacco bought the bank from deceased tycoon Naushad Merali, who within days withdrew Ksh1.7 billion, sending depositors into a panic mode pushing them to withdraw their deposits.

Read: Family Bank Receives Ksh1.1 Billion To Support Tea Farmers

Previous Post

Embattled FKF President Nick Mwendwa Announces His Return

Next Post

How I Was Able To Successfully Invest Back At Home While In Diaspora : Edward Ojuok

Editor SharpDaily

Editor SharpDaily

The latest in business, real estate, education, investments, tech and entrepreneurship, brought to you daily. Reach us through thesharpdaily@gmail.com

Related Posts

Investments

Foreign influence in Kenya’s credit crisis

May 28, 2025
Investments

SACCO’s at the heart of rural financial inclusion in Kenya

May 22, 2025
Investments

Real yields vs. nominal yields on Kenya’s government bonds

May 21, 2025
Investments

Knight Frank: Kenya’s wealthy swap mansions for market moves

May 19, 2025
Investments

All you need to know about the Cytonn Money Market Fund

May 16, 2025
Investments

May Momentum: Planting seeds for financial growth with CMMF

May 15, 2025

LATEST STORIES

Best investments for Kenyan seniors: Secure, predictable & low-risk

May 30, 2025

Why June is the Secret Sweet Spot for Travel

May 30, 2025

Strategies to elevate more women to corporate leadership

May 30, 2025

Tap on Kenya’s 2025 tech revolution

May 30, 2025

How CURBS supports employers and employees

May 30, 2025

NSE deserves more attention from young investors

May 29, 2025

The silent strain of remote work on Kenya’s urban workforce

May 29, 2025

How Kenya’s crypto bill could reshape the digital economy

May 29, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024