Mwalimu national sacco is a deposit taking cooperative which largely draws it’s membership from TSC employed Teachers.
In the recent past, members have been receiving reduced dividends which hasn’t been going down well with a majority.
In varous AGMs, members have been repeatedly advised to be patient as things would be better with time.
Nevertheless, the situation seems to be turning from bad to worse if reports by daily nation on Tuesday are anything to believe.
According to the paper, the teachers’ sacco intends to inject over Ksh 3.4 billion of members’ savings into the Controversial Spirebank.
The paper reports that an extra-ordinary meeting scheduled to be held soon will help the management seek the mandate to inject the said money into Spirebank.
The bank has been experiencing difficult times having flouted various benchmarks set by central bank of kenya which is the regulator in the industry.
Since it’s acquisition from the late businessman Naushad merali in 2015, it has been struggling to meet the regulatory requirements.
Continued loss making has wiped away the initial capital Invested using Teachers’ savings as the bank becomes a financial sinkhole.
This latest move to inject more money to a loss-making entity is likely to receive much resistance from members who have been demanding for it’s liquidation.
Last financial year, members got all time low dividends of 9% from the previous 10%. This is even as small Saccos continue giving their Members dividends at a rate of over 11%.
There are looming Reduced Dividends for teachers who have invested in mwalimu sacco if the management isn’t stopped from this continued Investments on Spirebank.
Efforts to get a strategic partner to inject into the bank the much needed capital aren’t bearing fruits Leaving the members with the burden of keeping the institution afloat.
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