Mwalimu sacco Pumps Additional Sh375m into Loss Making Spire Bank

Spire Bank Kenya MD Tim Gitonga

Kenyan Teachers Cooperative Savings & Credit Society popularly known as Mwalimu National Sacco Limited has injected an additional Sh 375 Million into loss making Tier three lender, Spire Bank Of Kenya in form of a shareholder loan.

According to the Business Daily, the Sh 375 Million loan will help Bank boost its thinning capital ratios as it targets to raise a total of Sh500 million.

Mwalimu Sacco which is ranked Kenya’s number one SACCO in terms of assets in 2015 acquired a controlling 75 per cent stake in Spire Bank, formerly Equatorial Commercial Bank.

In an interview with Business Daily, the Bank’s CEO Tim Gitonga was quoted, “The cash has already been provided by shareholders and is undergoing regulatory approval. We are already looking for additional funding lines and we have commissioned advisers to this extent.”

In the Full Year 2016 Results made public last week, the Bank extended its losses to Sh751 million from a loss of Sh486 Million posted in 2015 and Sh326 million loss in 2014.

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