5 October 2017

Kenya: No Respite in Sight for Chase Bank Customers

Customers of troubled Chase Bank face a longer wait to know the fate of their funds after a depositor applied for an extension of the lender's receivership.

The Central Bank of Kenya (CBK) says the lender's receivership, which was due to come to an end tomorrow (Saturday, October 7), would be frozen pending the hearing of the case at the High Court set for November 14.

"In the meantime, the status quo would be maintained," said CBK in a statement.

The regulator is yet to announce its preferred bidder to take over a controlling stake in the troubled bank. The CBK in May extended the appointment of Kenya Deposit Insurance Corporation (KDIC) as a receiver manager for six months from April 7.

The CBK said it had short-listed some suitors out of the 12 that expressed interest in the deal. The mix of interested buyers included three local banks, four foreign financial institutions and five other financial institutions and consortia.

CBK officials remained guarded earlier in the week on the Business Daily's questions on completion dates for the sale of the lender. "Please refer to the process and timing as outlined in the Expression of Interest on the CBK website link. Further updates and/or new information will be communicated as soon as it is available," CBK officials said on email.

In its Thursday statement the regulator said: "CBK and KDIC reiterate their commitment in keeping with their respective mandates and in accordance with the laws of Kenya, to protect the interest of CBLR depositors, its creditors, and the wider public interest."


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