Chase Bank to re-open next week Wednesday under KCB management


Chase Bank

Chase Bank, which was placed under receivership two weeks ago by the Central Bank of Kenya, will now re-open on Wednesday, April 27th, 2016 under the management of Kenya Commercial Bank (KCB).

While making the announcement, CBK Governor Dr. Patrick Njoroge said that this came after an understanding between the Kenya Deposit Insurance Corporation (KDIC) and KCB was reached allowing the bank to acquire majority shares.

According to Governor Njoroge, customers will have immediate access to their funds of up to Ksh 1 million.

Currently, 97% percent of account holders qualify to withdraw up to a million shillings. The online and mobile banking services will also be restored.

KCB will structure a repayment plan for depositors with funds above a million shillings.

The Governor adds that the Kenya Deposit Insurance Corporation is working with KCB on the modalities of re-opening Chase Bank.

KCB will over the next two days conduct due diligence on the structure of the bank before injecting capital into the bank.

“Any new deposits will, thereafter, be immediately available with deposits in excess of Ksh 1 million being made available in a structured manner, details of which will be released in the near future,” read the statement in part.

“Ongoing efforts to collateralize existing loans and recover funds that were obtained irregularly or are non-performing will be stepped up. Existing borrowers are required to continue servicing their facilities.”

Chase Bank was placed under receivership early this month by the Central Bank following a spate of panic withdrawals.

“Chase Bank Limited experienced liquidity difficulties and consequently, it was not able to meet its financial obligations on April 6, 2016,” CBK said in a statement.

Chase Bank was the third bank to be placed under receivership under the reign of Dr. Njoroge.

In 2015, the regulator placed Dubai Bank and Imperial Bank under receivership in the space of two months citing unsafe banking conditions.

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Story By Wangui Ngechu
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