Mwalimu Sacco are set to sell the cash-strapped Spire Bank to a local lender by the end of March this year.
In a communique to members, the Sacco’s Chairman John Ochieng said they are executing resolutions of an October annual general meeting where its members decided to either sell the bank or liquidate the bank.
“The Sacco is currently engaging both regulators, the Central Bank of Kenya and SASSRA as well as potential entities to take over Spire Bank completely off Mwalimu National’s ownership,” read the communique.
The Sacco says it has not and will not inject any additional funds into the bank in terms of cash flows from the Cooperative.
The sale is part of the Sacco’s plan to shed off the bank which has been stuck in a loss-making spree making it a sour investment for the teachers who are now keen to cut their losses.
The lender is in breach of all Central Bank of Kenya (CBK) capital requirements designed to ensure the financial stability of a bank.
The lender said in April last year that it was in talks with four potential investors for a stake sale in search of a turnaround of the institution, which was sold to Mwalimu National Sacco by the late businessman Naushad Merali.
The four investors are conducting due diligence on the lender, which is among the banks that are in breach of at least one CBK ratio on minimum capital and liquidity rules.