KDIC opens to claims by Charterhouse depositors


KDIC opens to claims by Charterhouse depositors
FILE | Kenya Deposit Insurance Corporation (KDIC) CEO Mohamud Mohamud

The Kenya Deposit Insurance Corporation (KDIC) will begin receiving claims by depositors in Charterhouse Bank (in Liquidation) from Wednesday this week.

In a notice issued on Monday, the depository insurer has asked depositors to collect, complete and return claim forms through Charterhouse bank offices in Nairobi’s Longonot Place or Central Bank of Kenya (CBK) branches in Kisumu and Mombasa.

“Duly completed forms with attachments as listed on the forms should be returned as soon as possible to the locations to facilitate payments. For all approved claims, payments will be processed through Real Time Gross Settlement (RTGS) direct to the claimant’s bank account,” noted part of the statement by KDIC.

Charterhouse depositors will be the second after those of Chase Bank to receive an enhanced payout of a maximum Ksh.500,000 following amendments to improve the cover of deposits held by customers in banks.

On May 7, the Central Bank of Kenya (CBK) approved the wind up of the bank which had remained under statutory management for 15 years on the recommendation of a report by the lender’s statutory manager.

“The report indicates that in view of the severe violations of the Banking Act, Charter House Bank (CHB) and its inability to address them, liquidation is the only feasible option,” the CBK said.

Charterhouse Bank was placed under the statutory management of the CBK on June 23, 2006 following severe violations of Banking Act provisions relating to lending, accuracy of returns submitted to the regulator and failure to obtain account opening documentation for a number of customers.

At the time of falling into statutory management, the lender had an asset base of Ksh.4 billion which included a Ksh.2.9 billion loan book.

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