Nairobi, Jan. 30 -- Mwalimu Sacco will pay Equity Group up to Sh510 million for taking over the troubled Spire Bank in a deal that will see the teachers-backed lender lay off all its workers.

The deal backed by the Central Bank of Kenya (CBK) is modelled as an asset purchase transaction. Equity will take over the assets and liabilities of Spire Bank rather than inject money into the acquisition.

Equity will be paid for the difference between the assets and liabilities, meaning that Spire Bank has zero value and teachers have lost billions of shillings after buying a majority stake in the bank from late tycoon Naushad Merali in 2014.

Mwalimu Sacco CEO Kenneth Odhiambo told the Business Daily that Sh510.7 million has been kept in an escr...