Another Kenyan SACCO is in the news for all the wrong reasons. Mwalimu National SACCO is reported to have lost over KES 2 billion after acquiring the loss making Spire Bank in 2015. Spire Bank was originally known as Equatorial Commercial Bank and was owned by the proprietor of Sameer Group, Naushad Merali.
Mwalimu SACCO is popular with teachers. The Business Daily Africa reports that the acquisition deal saw Mwalimu SACCO invest KES 2.4 billion to buy the 75 percent stake and controlling interest in the bank. Today, the whole bank has a book value of only KES 551.6 million, which means Mwalimu SACCO’s stake is worth KES 413.7 million, a loss of 83 percent of its investment. Hence, Mwalimu SACCO cannot regain its money even if it sold its stake.
The news comes in the wake of another scandal in which Ekeza SACCO founder and televangelist, David Kariuki Ngare, who is popularly known as Dr Gakuyo, is accused of siphoning more than KES 1.5 billion of shareholders money transferring the cash to personal accounts. The preacher is said to have acquired properties worth millions of shillings for his family as well as using part of the cash to boost an ailing real estate venture.