NAIROBI, Kenya, March 25 – The liquidation of Spire Bank which is fully owned by Mwalimu Sacco remains uncertain after a petition was filed at a high court in Kisumu seeking to stop the process.
The Sacco wanted to sell the bank to a local lender by the end of March when its members will meet for the annual performance review.
But a suit filed by Keneth Otieno, a teacher from Siaya County has faulted the process saying the cooperative ” deliberately concealed and did not disclose to its members in the Annual delegates meeting the purported reports of the transactional advisors engaged in the sale of the bank to investors.”
“The decision to voluntarily liquidate the bank is rash and premature, apart from being unlawful and further, the financial ramifications of the same have not been adequately considered by the bank much to the detriment and prejudice of its members,” the petition read in part.
The petitioner further accused the Sacco of failing and neglecting to take adequate steps to address the financial challenges facing the bank noting it has instead hesitated and watched it struggle
“The Sacco will be completed to take a huge hit in its financials once the losses are booked hence creating additional losses for members,” he added.
As part of his prayers, the petitioner wants the entire transaction declared unlawful, null, and void
The petitioner further wants the” Sacco to be obligated to continuously ensure and offer its financial support to the bank in meeting its day to day clearing and financial obligations until a lasting solution is found.”
