Mwalimu Sacco Opts To Liquidate ksh. 3B Spire Bank
Mwalimu SACCO plans to liquidate loss making spire bank by the end of the month after unnamed local financial institution showed interest.
Mwalimu SACCO chief executive officer Kenneth Odhiambo confessed that the move will see them exit the banking business following a decision that was also ratified during the annual delegates meeting held on Saturday.
“During the meeting, we looked at issues in terms of business model where from the current strategy ans set up, identify some of those areas we can reengineer and be able to generate more value to our money” said Odhiambo, who spoke in Mwalimu Sacco offices in Nairobi.
How to calculate Your 2021 Mwalimu SACCO dividends
KNEC Invites Applications For 2021 KCPE, KCSE Marking Exercise-How To Apply
How to Request for you Mwalimu Sacco 2021 Dividends Through E-mail To Avoid Queues
Irked Teachers Storm Out Of Mwalimu Sacco AGM, Leaving Officials With An Empty Hall
Affordable Housing Mortgage Rolled Out By Mwalimu Sacco
How To Withdraw Membership From Mwalimu National SACCO Before Retirement
Senate On A Rescue Mission To Save Teachers’ Savings From The Sinking Spire Bank
Mwalimu SACCO’S Deaf ears Are Haunting Teachers six years later
How Mwalimu Sacco Was Tricked into Buying a Dead Bank
Apart From troubled Spire Bank, other issues raised include investments in subsidiaries dealing in asset management and risk insurance brokerage that the Sacco is currently undertaking a resolution mechanism in terms of dealing with it.
The Senate Committee on Finance and Budget investigated the transaction last year seeking to know why teachers seemed to have been duped into an investment that failed Io generate revenue
The board blamed the controversial Sh3 billion sale of the troubled Spire Bank to Mwalimu National Sacco (MNS) on Naushad Merali for withdrawing all of his deposits amounting to Sh1.7billion im-mediately he sold his shares in the bank.
The CEO said yesterday that the board has already initiated discussion with a local entity in terms of how the assets and liabilities of the bank can be taken up.
We engaged a local entity and we have made progress in terms of engaging transaction advisors, cleared their work and done due diligence and the other entity has also engaged the transaction and legal advisors well cleared their work,” assured Odhiambo.
He also said they have held a meeting with the principal personalities interested in Spire bank and are now good to go in terms of concluding on the agreement
Our approach was to protect the depositors’ interest so that we have a quiet exit, you know financial service industry is very sensitive and if you do not protect the depositors’ interests and manage it in a way that does not preserve some confidence, it may have a contagion effect on the Sacco,” he explained.
“The progress is gone to almost the tail end so we are waiting for the two regulators to now okay in what we have agreed and move on with that,” he added.
On Mwalimu asset management, which is dealing with investments in real estate like Kisaju, he said measures were discussed in terms of in-flows of the asset properties like sell them off and have the money transited to members. Mwalimu Sacco has a membership of over 106,000.
“This year, we are looking at the economy rebounding in terms of growth…the asset base last year was about Sh61 billion and want to move it by another Sh35 billion this year. We are looking at a situation where we grow our loan books because that is the most key asset we have and leverage on technology” the CEO said.
Apart from liquidating Spire Bank, emerging issues from the delegates included having more investments offloaded so that the money can come back to the Sacco.
They also want to channel new cash into credit in a move that would increase their loans to total asset ratio to about 80 per cent which would excite revenue generation and enable them retain more surpluses to build on institutional capital.
Thanks for reading our article. Funds From this blog goes towards needy children. Kindly Support them by clicking the button below: