NAIROBI, Kenya, Mar 11 – Mwalimu National Deposit-Taking Sacco has written off Sh960 million linked to its troubled investment in the collapsed Spire Bank, even as the teachers’ savings cooperative reported a sharp rise in profits for the year ended December 2025.
According to the Sacco’s latest audited financial statements, the institution booked Sh960.3 million as a net impairment charge on financial assets, largely associated with the failed banking venture.
Despite the write-off, the Sacco posted a surplus of Sh1.27 billion for the year, nearly doubling from Sh718.9 million in 2024, driven by growth in lending and higher interest income from members.
Net interest income rose to Sh3.53 billion in 2025 from Sh3.18 billion a year earlier, while total assets expanded to Sh76.3 billion from Sh68.9 billion, reflecting continued growth in member loans and deposits.
“The above are extracts from the Society’s financial statements audited by Ernst & Young LLP and approved by the Board of Directors on February 20, 2026,” the Sacco said in the published accounts.
“The accounts were approved by the Sacco Societies Regulatory Authority on February 26, 2026 and copies are available for inspection at the Society’s head office.”
The financial hit stems from Mwalimu Sacco’s long-running investment in Spire Bank, formerly Equatorial Commercial Bank, which it acquired in stages beginning in 2015 as part of a strategy to diversify into commercial banking.
However, the lender struggled with persistent losses and regulatory capital challenges before eventually collapsing.
In 2023, Equity Bank acquired a portion of Spire Bank’s assets and liabilities, including deposit accounts and some loan books, in a rescue transaction approved by regulators.
Mwalimu Sacco has since been gradually writing down the value of its investment as it restructures its balance sheet and absorbs losses linked to the failed bank.
