CBK hires firm to valuate Chase Bank ahead of sale

The Central Bank of Kenya (CBK) has appointed an independent international firm to conduct due diligence and valuation on Chase Bank.

The appraisal process is meant to give interested buyers a glimpse into the bank before the regulator puts up a majority of the banks shareholding on sale.

The Kenya Commercial Bank (KCB), which was appointed as the statutory manager of Chase Bank has however shown interest in being a part shareholder once the 30 days evaluation process is completed.

KCB Chief Executive Officer Joshua Oigara said while the bank remains interested in the mid tier lender, it is important to involve the independent business review since it is a critical way in ensuring fairness for its stakeholders.

“We remain very interested as KCB but the process must be one that gives a fair value to every single party, particularly the depositors, the staff and the shareholders. We will never want a process as KCB where shareholders feel that we took advantage of the process,” Mr Oigara said.

KCB took the pole position to acquire a majority share in the bank after it was appointed as the statutory manager, to steer Chase Bank’s recovery.

Foreign shareholders have however raised objection to the process arguing KCB and the banking regulator had kept them in the dark over the future of the bank.

Mr Oigara said that the bank was very confident about the future of Chase Bank since it has normalized its operations and it is likely to bounce out of receivership sooner than expected.

“I’m very confident that chase should come out of receivership within the period of August and September, which decision remains with the Central Bank. There are other activities going on in chase bank which is not for us as KCB to manage” he added.

The credit facility that was placed into receivership early this year has so far signed 3,200 new customers with deposits amounting to Sh12 billion since its reopening on 27^th April.

The lender was placed under receivership on 7^th April following revelations that it had misinterpreted its financial reports by concealing non-performing loans and irregular insider loans.