, NAIROBI, Kenya, Jan 23 – Mwalimu Savings and Credit Cooperative Society (Sacco) has acquired a 51 percent stake at Equatorial Commercial Bank (ECB) at a cost of Sh1.6 billion making it the majority shareholder of the bank.
The acquisition comes following the approval by the three relevant regulatory bodies that include Central Bank of Kenya (CBK), Competition Authority of Kenya (CAK) and Sacco Societies Regulatory Authority (SASRA) to acquire majority stake in the bank.
Following the acquisition the society will now nominate three of its board members to the ECB board to take care of its interests at the bank.
Mwalimu Sacco CEO Robert Shibutse said the acquisition, will enhance the society’s asset portfolio and benefit the Sacco members’ wealth.
“The Society is not converting into a bank nor merging with Equatorial Commercial Bank. We are investing in the bank. This is one of the many investments Mwalimu Sacco will be making.’ he said.
Mwalimu Sacco was formed and registered in the year 1974 under the Co-operative Societies Act as a Sacco Society. Its main objective is to mobilize savings and provide credit to its members.
The teachers Sacco that has about 57, 521 members is ranked Kenya’s largest Sacco by assets, which totalled Sh24.5 billion in the year ended December 2013, according to data from the SASRA.