Chase Bank sends home MD and Board Chair after dismal performance

April 6, 2016
Shares
Chase Bank chairman Mr Zafrullah Khan and group managing director Mr Duncan Kabui (right)
Chase Bank chairman Mr Zafrullah Khan and group managing director Mr Duncan Kabui (right)

, NAIROBI, Kenya, April, 6 – Chase Bank has replaced its long-serving Chair Zafrullah Khan and Group Managing Director Duncan Kabui days after the bank reported a Sh792m loss in 2015 from a high of Sh2.3bn profit in 2014. 

“Mrs Muthoni Kuria has been appointed as the Chair of Chase Bank’s board. Mrs Kuria has served on the Board for over three years. She is a career banker and certified public accountant. She holds an MBA and serves on other boards,” says a statement sent by Chase Bank and signed by Kuria.

Earlier on Wednesday, rumours of the Bank’s collapse were dismissed by Central Bank Governor, Dr Patrick Njoroge, with Chase Bank responding to the rumours as ‘malicious and irresponsible.’ However, the CBK Governor, while speaking with journalists, said the regulator will be enforcing stringent audit process of books and IT systems.

However, the CBK Governor, while speaking with journalists, said the regulator will be enforcing stringent audit process of books and IT systems.

Chase Bank says Khan and Kabui stepped aside following the publication of the 2015 financial statements which reveal a significant jump of its non-performing loans from Sh3 Billion to Sh11 billion. Interestingly, the Bank released a revised 2015 statement showing a significant difference in the loans advanced to directors and employees.

A number of banks have faced closer scrutiny from the regulator resulting to the closure of Imperial Bank and the exit of the NBK CEO along with five senior managers.

The Central Bank has raised concern on the growing non-performing loans credited to weak lending policies.

“We would like to reassure the general public that our customers’ funds and investments are safe,” said Kuria, adding shareholders of the bank have fully supported the changes, and remain committed to the partnership with the bank.

Mr Paul Njaga continues as the Chief Executive Officer.

Shares

Latest Articles

Stock Market

Most Viewed