Mwalimu Sacco CEO Robert Shibutse. He previously served as an executive director at Equatorial Commercial Bank. PHOTO | FILE
The bank has issued a notice to its shareholders, asking them to approve the injection of Ksh500 million ($5 million) in new capital after accumulated losses wiped off more than 60 per cent of its capital last year.
The teachers, through Mwalimu National Holdings, the investment arm of Mwalimu National Sacco, will now be required to contribute Ksh375 million ($3.75 million) to defend their 75 per cent interest in the bank.
Mwalimu National Holdings (MNH) is set to complete the acquisition of the 75 per cent stake in the bank for Ksh2.7 billion ($27 million) ahead of schedule. The transaction had a deadline of December 31, 2015.