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How is CBK’s support for looted Spire Bank going?

Patrick Njoroge, Governor of Central Bank of Kenya

In October 2021, the mainstream media reported that the Central Bank of Kenya (CBK) had supported cash-strapped Spire Bank.

The exact amount of money given to Spire Bank by CBK was however not disclosed.

Parliament had opened an inquiry into the matter.

The National Assembly’s Finance committee was reportedly looking into a petition asking MPs to direct the banking sector regulator to urgently extend financial support to the teachers-owned bank pursuant to sections 34 and 36 of the CBK Act.

READ: Spire Bank in panic after regulator cracks whip on Mwalimu National Sacco

The inquiry follows a public petition filed by Alego Usonga MP Samuel Atandi on behalf of millions of teachers who invested in Spire Bank through Mwalimu National Sacco Society Limited.

Mr Atandi had wanted Parliament to direct the CBK to furnish it with a comprehensive report outlining efforts, if any, it has made or is making in terms of extending financial support to secure the savings of millions of teachers and other depositors across the country.

“Your petitioners humbly pray that the House, through the committee on Finance and National Planning urgently look into issues raised and recommend that the CBK extend financial intervention to Spire Bank limited to forestall imminent collapse, just like CBK has previously done for financial institutions which had similar financial challenges,” Mr Atandi said on behalf of the petitioners in October.

In May, 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.

READ MORE

1/

The questionable wealth & dangerous maneuvers of a TSC auditor

2/

Sasra suspends CEO and Board Chairperson of Mwalimu Sacco

3/

Govt blames Naushad Merali for the ‘fall’ of Spire Bank that is run by struggling Mwalimu National Sacco


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