Members of Parliament have demanded investigations into the cash-strapped Spire Bank. The National Assembly’s Finance committee has urged the Central Bank of Kenya (CBK) to address the bank’s challenges as stipulated in law in the interest of teachers.
“Central Bank of Kenya and the Sacco Societies Regulatory Authority should give the bank adequate time to find a strategic investor,” the committee said.
According to the committee, the two regulators, CBK and Mwalimu Sacco, had given Spire Bank a deadline of June 2022 to solve its woes.
The committee added that the Ethics and Anti-Corruption Commission and the Directorate of Criminal Investigations carries out investigations immediately to establish whether there was any foul play during the purchase of the bank and the current situation of the bank.
A Dubai-based Singaporean fund last week made a new offer for the purchase of Spire Bank. Feonrich investment Pte Ltd last week handed the Mwalimu Sacco board an irrevocable expression of interest offer for the purchase of the teachers’ bank.
“Kindly accept this irrevocable EOI as our intent to negotiate in good faith for the purchase and acquisition of all shares, 100 percent ownership, assume full control of operations and management, and injection of fresh capital for securities sustainability and potential growth of the herein mentioned commercial bank and finance business upon your agreement to the following terms,” it said in the offer letter dated April 7.
On the contrary, the bank had also seen a local bank express interest in buying it, and the board has yet to decide which investor it shall sell.
Others who have shown interest in the teachers’ bank include a Hong Kong Stock Exchange-listed Chinese technology, a group of local tycoons.
Mwalimu Sacco had initially settled on an asset purchase to deal with the troubles at the institution.
Still, the CBK advised the involvement of a strategic investor who has the proof of availability, source of funds and experience in running a bank.
Both the Chinese investor and the local tycoons from the race failed to meet these qualifications.
In May, last year, CBK governor Patrick Njoroge said the regulator would grant the institution access to its discounted loan facility if it falls short of cash for its day-to-day operations in the short-term, including meeting customer demand.
The teachers’ sacco spent more than Sh2.4 billion between 2015 and last year to take full ownership of the bank, previously trading as Equatorial Commercial Bank, from late businessman Naushad Merali.