PROPOSED ACQUISITION BY EQUITY BANK(KENYA)LIMITED OF CERTAIN ASSETS AND LIABILITIES OF SPIRE BANK LIMITED

Mwalimu National Savings and Credit Cooperative Society Limited (Mwalimu National Sacco) hereby announces to its members and the public that Equity Bank (Kenya) Limited (EBKL) has entered into an Assets and Liabilities Purchase Agreement (the Agreement) with Spire Bank Limited (Spire Bank) for the purchase of certain assets and liabilities of Spire Bank (the Proposed Transaction).

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Mwalimu National Sacco Limited is the beneficial majority shareholder of Spire Bank Limited with a stake of 99.2% in the Bank. Spire Bank is licensed by the Central Bank of Kenya (CBK)to undertake the business of a bank under the provisions of the Banking Act.

EBKL is a subsidiary of Equity Group Holding Plc,a non-operating holding company licensed by the CBK that holds interests in banking subsidiaries in Kenya, Rwanda, Tanzania, Uganda, South Sudan and Democratic Republic of Congo and a Commercial Representative Office in Ethiopia. EGH has other subsidiaries in investment banking, insurance, telecom, fintech and social impact investments. EGH is listed on the Nairobi Securities Exchange and cross-listed on the Uganda Securities Exchange and the Rwanda Stock Exchange.

EBKL is licensed to undertake the business of a bank by the CBK under the provisions of the Banking Act(Chapter 4BB,Laws of Kenya)(the Banking Act).In the Bank Supervision Annual Report for year 2021 published by CBK,EBKL was ranked 2 out of 39 banks in terms of composite market share as of 31*December 2021 with market share of 13.57%. EBKL serves approximately 11.97 million customers through a wide array of digital channels supported by 190 branches. In its unaudited half year financial statements as of 30June 2022, EBKL reported total customer deposits of KES 522,753 million and net loans and advances to customers of KES 417,482 million.

Spire Bank is also licensed by the CBK to undertake the business of a bank under the provisions of the Banking Act. Spire Bank serves approximately 20,000 deposit customers and approximately 3,700 loan customers from 10 branches .In its un-audited half year financial report as of 30h June 2022,Spire Bank reported total deposit liabilities of KES 1,938 million and net loans and advances of KES 1,745 million together with additional statutory loan loss reserves of KES 800 million that reduce the net loan and advances after applying statutory loan loss provisions to KES 945 million.

On completion of the Proposed Transaction, all existing depositors in Spire Bank (other than remaining deposits from Mwalimu National Sacco)will become customers of EBKL that will take on the obligation of meeting these liabilities that amount to approximately KES 1,322 million as of 31* July 2022.Similarly,EBKL will take on all of Spire Banle’s loan customers on completion of the Proposed Transaction. The Agreement is, however, subject to conditions that are customary to transactions of this nature, including all regulatory approvals from amongst others, the CBK and the Sacco Societies Regulatory Authority, approvals from competition regulators, board and shareholder approvals of EBKL and Spire Bank

Until completion of the Proposed Transaction, Spire Bank will continue to operate normally and continue to meet its customers’ banking needs.

The Proposed Transaction is a step towards implementation of the members’ resolution during the Special Delegates Meeting held on 2-October 2021.

Thank you

Chief Executive Officer

Mwalimu National Sacco Limited

13*September 2022