Equity Bank Kenya has signed an Assets and Liabilities Purchase Agreement with Spire Bank Limited for the purchase of certain assets and liabilities of Spire Bank.

In its un-audited half year financial report as at June 2022, Spire Bank reported total customer deposits liabilities of Ksh. 1.938 billion and net loans and advances to customers of Ksh.1.745 billion. They also have additional statutory loan loss reserves of Ksh. 800 million and statutory loan loss provisions of Ksh. 945 million.

In the proposed transaction, Equity Bank Kenya Limited will acquire approximately 20,000 deposit customers holding deposits of approximately Ksh. 1.322 billion. The bank also plans to acquire approximately 3,700 loan customers that have outstanding loan balances of Ksh. 945 million.

Speaking when announcing Equity Group’s decision at the partnership signing ceremony, Dr. James Mwangi, Group Managing Director and CEO said, “We feel honoured to extend a hand of partnership to teachers with whom we have had a long and strong relationship. With the 20,000 teachers who we will be inheriting from Spire bank, Equity will become home to over 100,000 teachers spread throughout the country and accessing our services through our branches, our agent network and digital banking channels. Currently Equity processes a total monthly remittance of Ksh. 1.8 billion in teachers’ salaries. 43,000 teachers have borrowed loans valued at Ksh. 33 billion with a monthly repayment of Kshs.800 million. In addition, Equity is home to over 24,000 ECDE institutions and primary schools, and over 4,000 secondary schools.”

The Chairman of Mwalimu National Sacco, Joel Gachari said, “On completion of the proposed transaction on 30th November 2022, all existing depositors of Spire Bank (other than remaining deposits from Mwalimu National Sacco) will become customers of Equity Bank Kenya and enjoy a wide range of products and services through Equity’s extensive infrastructure and channels including branches, agent network and digital self-service channels. We shall also explore other areas of collaboration for the benefit of both institutions and their members”.

Mwalimu National SACCO has fully acquired Spire Bank from businessman Naushad Merali of Sameer Group, for an undisclosed amount, in 2020. The bank, formerly known as the Equatorial Commercial Bank (ECB) traded 50% stake to Mwalimu National SACCO for Ksh.500 million.