Kenya: Chase Bank to Reopen Next Week As KCB Takes the Helm

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Chase Bank branches will reopen next Wednesday after KCB Group stepped up to become a majority shareholder in the fallen bank.

All branches are expected to be open by next Wednesday and customers will get immediate access to deposits of up to Sh1 million. The Central Bank of Kenya (CBK) also revealed 97 percent of accounts will have full access to their funds upon reopening.

 

All branches to reopen

“All Chase Bank Ltd (In Receivership) branches will open by Wednesday, April 27, 2016. The online and mobile banking services will also become available. However, branches may initially offer limited banking services,” the Central Bank said.

However, those with deposits of more than Sh1 million have been told they will have to wait for details on how their deposits will be made available in a “structured manner in the near future”.

The Central Bank also expressed its confidence in the capability of KCB reviving Chase Bank, reassuring the bank’s worried customers.

“CBK and KCB will ensure that Chase Bank Ltd (in receivership) will have adequate liquidity for its operations. KCB will make available a management team that will assist in the receivership,” it said.

“We have confidence in the strength of our banking sector, and the further boosting of confidence that these steps will provide.”

 

Central Bank fires warning to managers

Aside from reassuring Chase Bank customers about the future of the troubled lender, the Central Bank also had a warning for any managers who are found to be implicated in the bank’s demise.

“As has also been indicated, firm action will be taken against those who have abused their fiduciary duties of managing our financial institutions,” the CBK said.

Following the Bank’s earlier this month, an internal audit showed various directors received hidden loans .

 

Featured image:

By DEMOSH from Nairobi, Kenya – Central bank, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=41664891