KCB acquires Chase Bank, branches to reopen in 7 days

April 20, 2016
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, CHASE-BANK-BANNER

Nairobi, Kenya 20 Apr – The Central Bank of Kenya has settled on Kenya Commercial Bank’s bid to acquire a majority stake in Chase Bank, with a promise of reopening the bank in a week’s time.

According to CBK Governor Dr. Patrick Njoroge, KCB scooped the bid from nine international and local bids.

“The parameters we were looking for in the proposals include speedy resolution, one that supports credibility, includes brand recognition, liquidity as well as sound management,” said CBK.

The regulator endorsed an agreement with KCB this morning at 8.30am that essentially agreed Chase Bank’s management and operations will be taken over by KCB and open for business on Wednesday next week.

“KCB’s credentials as a strong bank with a solid brand, adequate human resources and wide experience in the country, will facilitate safeguarding the interests of CBL’s depositors and creditors, and the wider public interest. CBK will continue to monitor closely developments in CBL, Accordingly,” says CBK.

This is the first time a bank in receivership has been reopened. Chase Bank went into receivership two weeks ago after panic withdrawals following alleged mismanagement reports emerged in the public domain.

According to the agreement, KCB will do a review of the bank to fine tune the modalities of acquisition but it is understood Chase Bank customers will access at least Sh1 million when it reopens.

“97 percent of the accounts will receive their money in full. All branches will open on 27th April.”

The regulator and KCB will provide liquidity needed as KCB manages the operations. Meanwhile, the Kenya Deposit Insurance Corporation will continue to be the receivers.

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