Ever since the loss-making Spire Bank, previously Equatorial Commercial Bank (ECB) was acquired by the Mwalimu National DT Sacco, the lender has been in financial doldrums and crippling boardroom battles.
Struggling to bring Spire Bank back to profitability, Mwalimu National Sacco now says it will sell off part of the bank’s assets and liabilities to Equity Bank Kenya.
In the latest statement, Mwalimu National Sacco said it is seeking a sale deal with Equity Bank Kenya Limited, one of the most profitable lenders in Kenya with a 13.57% market share of the Kenyan Banking sector.
Spire Bank, on the other hand, has a network of branches located in Westlands, Chester House, Waiyaki Way, Mombasa Road, Sameer Industrial Park, Industrial Area, Avon Center, Card Center Branch, Moi Avenue Mombasa, Nyali, Kisumu, Kakamega, and Eldoret.
While the Spire Bank purchase by Equity Bank Kenya is subject to regulatory approvals, several resignations on the Spire Bank Board of Directors and a court suit, threaten approval of this transaction.
The deal to sell off Spire Bank all began more than seven years ago when the Competition Authority gave Mwalimu National a nod to acquire a 50% of ECB and property sitting on land reference no. 209/19717 measuring 0.3251 hectares, owned by Fidelity Shield Insurance Company Limited-a subsidiary of ECB.
This is according to Gazette Notice No. 2570, dated 7th April 2015 signed by the Director General of the Competition Authority of Kenya.
Mwalimu National then went ahead to acquire more shares in ECB and Equatorial Investment Bank (EIB upon signing agreements on 10th October 2014, and payment of the agreed consideration was made on 31st December 2014.
Mwalimu National then became the majority shareholder in ECB, having acquired a 75 percent stake in the bank at the cost of KSh 2.6 billion.
ECB then moved its head office to Mwalimu Towers, the SACCO’s nerve center located in Nairobi’s Upper Hill area.
The deal was that Mwalimu National Holdings Limited first acquires 51% of Equatorial Commercial Holding (ECH) in the first phase and another 24% stake in the next phase.
ECB was to offload a 51% stake at the cost of KSh 1,663,321,806 and a further 24% at KSh 782,739,673.00.
After receiving a clean bill of health from parliament and the Commissioner for Co-operatives, Mwalimu National Sacco went ahead with its ECB acquisition.
At the time of its acquisition, ECB was already in the red with a pre-tax loss of KSh 326.4 Million in the year ending December, 31st 2014, weighed down by bad loans made ahead of the controversial buyout by Mwalimu National Sacco.
The Bank had made a provision of KSh 880.8 Million to cover the bad debt incurred during the 2014 financial year.
Audit firm Ernest and Young, in a probe commissioned by Mwalimu National Sacco ahead of the acquisition, raised red flags on the deal.
Before its acquisition, Equatorial Commercial Bank (Spire Bank) posted losses except in 2013 when it made a net profit of KSh 55.7 million.
The latest data from the CBK shows that Spire Bank, previously known as Equatorial Bank Limited, began operations in 1984 as a non-banking financial institution and converted to a fully-fledged bank in 1995. ECB and Southern Credit Banking Corporation merged in June 2010 and retained the name ECB. In May 2026, ECB changed its name to Spire Bank after selling the majority stake to Mwalimu National Sacco.
“CBK welcomes the transaction which will enhance the stability of the Kenyan Banking sector. Further updates will be provided as the transaction progresses,” said CBK in a statement.
Equity Bank Kenya expects to ride on Spire Bank’s over 20,000 depositors and 3,700 loan customers and over KSh945 million in loan assets from struggling Spire Bank and deposit liabilities of KSh1.3 billion.
Mwalimu National Sacco will cough up KSh377 million difference, KSh42 million in an escrow account, KSh358 million potential claim on assets, KSh243 million employee-related costs and balance sheet gaps, KSh124 million vendor-related and litigation costs as KSh552 million in estimated taxes.
