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{
    "id": 1030533,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1030533/?format=api",
    "text_counter": 227,
    "type": "speech",
    "speaker_name": "Sen. Kang’ata",
    "speaker_title": "",
    "speaker": {
        "id": 1826,
        "legal_name": "Irungu Kang'ata",
        "slug": "irungu-kangata"
    },
    "content": "Madam Deputy Speaker, I wish to support what my sister, Sen. Omanga, has done today, to bring the attention of this House to the problems bedeviling Spire Bank. Madam Deputy Speaker, Spire Bank is owned by secondary school teachers of this Republic. Spire Bank made a loss of Kshs556 million for the last six months. This is compared to Kshs81 million profit that they made last year, in the same period. That bank experienced a 90 per cent default rate, which is seven times higher than the industry rate of 13.1 per cent. This pushed the gross non-performing loans to Kshs2.69 billion out of a total loan book of about Kshs2.96 billion. Madam Deputy Speaker, the liquidity ratio of that bank is about 6.6 per cent, which is below what the regulator requires of about 20 per cent. I have been informed that Mwalimu National SACCO Society Limited injects almost Kshs200 million to that company every week. As a result, monies belonging to teachers of this Republic of Kenya is being lost every week. Mwalimu National SACCO Society Limited continues pumping money into a dead bank, while CBK, which is the regulator, is doing nothing whereas it has the power to punish or to enquire into the affairs of Spire Bank. So far, we are not aware of anything that has been done by the CBK to ensure that teachers of this Republic of Kenya are protected. Madam Deputy Speaker, we all know the story behind the sale of that bank to Mwalimu National SACCO Society Limited. That bank used to be owned by one rich Asian. He then maneuvered to have it bought very expensively by the teachers of this Republic, only to turn out that it was a shell bank. I urge the relevant Committee to investigate this scandal to ensure that all the culpable persons are prosecuted and secondary school teachers of this Republic get justice, so that we do not have a situation where good money is being thrown into a bottomless pit. Madam Deputy Speaker, I thank Sen. Omanga for bringing this issue to this House. I have no doubt that the relevant Committee will render justice to the teachers of the Republic of this country. I thank you."
}