Chase Bank to close 10 branches after SBM acquisition

Chase Bank (in receivership) is set to close 10 of its branches as it transitions into SBM Kenya following its acquisition by the Mauritian lender.

This will see the bank remain with 35 branches, which will be re-branded to SBM and re start operations from August 20.

In an email to customers, the bank indicated it will be closing the Bondeni, City Center, Delta, Eastleigh, Eldoret Xpress, Garissa, Kayole, Kisumu Xpress, Pangani Xpress and Parklands branches.

Customers from the affected branches will be transferred to existing ones to ensure smooth transition.

“As a Chase Bank customer, you are also welcome to access our banking services at any of our Chase Bank agents as well as via our mobile and internet banking channels,” the bank said in its email to customers.

SBM first entered the market in 2017 when it acquired Fidelity Bank with 10 branches in Nairobi and Mombasa.

The closure of branches will also see the sacking of a number of employees.

In a media update last week, SBM Holdings chief executive officer Andrew Bainbridge indicated the bank strive to absorb as many employees in the transition.

SBM Holdings in April undertook to acquire a majority of Chase Bank’s assets and deposits with customers who banked with the lender before it was put under receivership entitled to 75 percent of their deposits.

With the bank set to re-open on August 20, customers who had deposited funds in the bank before it was put under receivership will initially receive 37.7 percent of their funds.

The 3,100 new customers whose money was stuck with the ailing lender will have access up to a quarter of the cash or Ksh14.25 billion which will be deposited in a current account while another Ksh14.25 billion will be put in a savings account earning an interest of seven per cent.

The remaining Ksh28.5 billion will be set aside as a term deposit attracting seven per cent interest, and will be paid to the customers for a period of three years.

The Central Bank of Kenya and SBM Holdings are yet to make it clear how the outstanding 25 percent will be recovered and given to depositors.