The Government has ordered an inquiry into the affairs of Mwalimu National Sacco’s bid to acquire Equatorial Commercial Bank.
The Commissioner of Co-operatives, pursuant to Section 58 and 73 of the Cooperative Societies Act, has consequently appointed an inquiry team to probe and report to him on the investment that has seen the Co-operative Alliance of Kenya (CAK) register its protest against the acquisition as to the transaction handling.
Making the announcement, the Commissioner of Co-operatives Patrick Musyimi said that it was important that the inquiry team be given sufficient time to work and furnish details of the transaction to his office so that the interests of members of the Sacco are protected as per the law.
“We will share the details of the inquiry as soon as they are finalized”, assured Mr. Musyimi. “This move will subject the matters to a rigorous process that will ensure that any pertinent issues are addressed before the investment can proceed,” added Mr. Musyimi.
Mwalimu Sacco recently acquired a 51pc stake at Equatorial Commercial Bank at a cost of KES 1.6bn, making it the majority shareholder of the bank.
The acquisition followed the approvals by the Central Bank of Kenya, Competition Authority of Kenya and Sacco Societies Regulatory Authority.