Sawa Mukiha.

@ Mainat,cheers for the PDF on Equity i have skimmed a quickie n its looks like a good read.

@ Mukiha the facts you bring out are very enlightening. am sure many guys here are shareholders and customers and no one would like to lose their money.

@ TB congratulations on choosing not to become a kikuyu or kaleo before u were born but u made the wise choice of becoming watever tribe u r. Those who chose to be these tribes am sure are damn in ur eyes...shame on them!! n thanks for warning us albeit without facts

IF YOU EVER LOSE,MAKE SURE YOU NEVER LOSE THE LESSON!!

@Tony Stark:

Here are some excerpts from 'Understanding the Re-birth of Equity Building Society in Kenya',by Gerhard Coetzee,Kamau Kabbucho & Andrew Mnjama,on behalf of Microsave [2002]:

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'When we asked Equity stakeholders to identify the key factors that have led to the success of the institution,.....both management and staff trace the start of the turnaround to the self-awareness and management skills training provided by the two consultants,James Mwangi and Nancy Nyambici,in 1993/94.'

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'The CBK rating report of December 1993 stated that Equity was technically insolvent.....The CBK did not request the closure of Equity as the Central Bank was merely the inspection function,and only the Registrar of Building Societies had the power to close the institution. It was argued that since there were no complaints from clients,Equity should be given the chance to turn around.'

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'During the Board meeting called to discuss the CBK inspection report in April 1992,the three directors developed an action plan that included injection of capital.....James Mwangi,through his contacts with the CEO,deposited Ksh 3,4 million with Equity and an additional Ksh 4 million from his associates,which saved the building society from eminent collapse due to cash flow problems.'

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So now we know that JM put in sh4m and not the sh200m brandished around here! And,oh yes he was senior Finance Manager at Trade Bank; not a Director...perhaps now we should ask where he got the sh4m from......

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

sahau sahau

@MAINAH
There is a difference between collapsing and reduced profitability.

The factors you have highlighted will result in reduced profitability,but not a collapse of the bank.

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)