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Chase Bank to close 10 branches

Among the branches to be closed include Prudential Building City Centre Branch/FILE

NAIROBI, Kenya, Aug 20 –  Chase Bank has announced plans to close 10 branches days to a complete take over by SBM Holdings.

Among the branches to be closed include Bandari, Prudential Building City Centre branch, Delta Branch, Eastleigh Branch 1 at Sunrise Mall, Eldoret Express at Jamia Mosque Eldoret and Garissa Branch at Liac Centre.

Others are Kayole Branch at Shujaa Mall, Kisumu Express Branch at Naivas Supermarket, Pangani Express Branch at Oil Libya and Parklands Branch at Medi Plaza.

“We wish to bring to your attention the ongoing transition of Chase Bank Limited (In Receivership) operations into SBM Bank (Kenya) Limited in line with approvals received from all regulatory authorities. As you may already be aware, this transition is being undertaken on the basis of the acquisition of certain assets,” reads an email sent to customers, Friday.

The Bank has urged customers to visit the closest branches from August 20th, meaning some Chase Bank employees will either be redeployed or let go as soon as the new owners take over.

SBM Holdings Limited will complete the acquisition of select Chase Bank assets and deposits by August 17th, unlocking billions of shillings in customer deposits held at the bank after the lender was put under receivership in 2016.

Through its Kenyan subsidiary, SBM Kenya, the Mauritius-based financial services group will assume 75 per cent of the value of deposits under moratorium at Chase Bank.

SBM Kenya will also absorb all non-moratorium deposits at Chase Bank as wells as most branches and employees, with large depositors getting 50 per cent of their money immediately the transaction is finalized.

The remaining 50 per cent will be placed in interest-earning term deposits to be accessed equally over a period of three years

The bank collapsed with over Sh100 billion in customer deposits, but the receiver manager settled savings of customers that had deposits of up to Sh1 million.

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Three per cent of Chase Bank clients had over Sh1 million in their accounts by the time the troubled lender was taken over by the Kenya Deposit Insurance Corporation.

Meanwhile, KCB Bank Kenya is set to exit the management of Chase Bank at the end of this month following SBM Group’s winning bid to take over Chase Bank.

KCB Kenya had been retained by KDIC as receiver-manager of Chase Bank.

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