CBK to support banks facing liquidity issues Njoroge

The Central Bank of Kenya will, starting today (Monday), avail a facility to any bank or micro finance institution facing liquidity issues that are not of their own fault, CBK Governor Patrick Njoroge has said.

Addressing the press at the CBK headquarters in Nairobi on Sunday, Dr Njoroge said they intend to open Chase Bank as soon as possible, noting that as soon as the bank is open the depositors will be able to access their money.

In his address, the CBK governor stressed that Rafiki Microfinance and Chase Bank are different entities, adding that messages on social media linking the two are not credible.

He further intimated that they have national and international entities interested in Chase Bank but refused to divulge further details.

The move comes barely a week after Chase Bank was put under receivership by the CBK following a spate of panic withdrawals that left the bank facing serious liquidity issues.

In a statement, the banking regulator said the bank would be under receivership for 12 months following what the CBK considers to be unsafe financial conditions.

The closure of the bank came barely a day after Group Chairman Zafrullah Khan and group managing director Duncan Kabui quit after restating the bank’s financial performance.

Chase Bank becomes the third bank to be put under receivership in less than a year. In 2015 the regulator put Dubai Bank and Imperial Bank under receivership citing unfavourable conditions and massive irregularities.

On Sunday, President Uhuru Kenyatta lauded the move by Central Bank Governor Patrick Njoroge to conduct a crackdown on rogue banks.

Speaking at St. Andrews Cathederal ACK Thika, President Uhuru said the move is aimed at protecting the welfare of Kenyans who have deposited their money in the banks.

He added the move is also aimed at streamlining the banking system in the country that he said is being used by a few to make profit at the expense of their customers.

The head of state however assured Kenyans who banked with the collapsed institutions that their money is safe.