Nairobi — The Central Bank Of Kenya has approved the liquidation of Chase Bank Limited.
The bank regulator through a statement said the decision was made after receiving a report from the Kenya Deposit Insurance Corporation (KDIC) which revealed that the financial status of the bank was weak.
"On April 7, 2021, KDIC submitted the Receiver's Report to CBK recommending that CBLIR be liquidated. The report indicates that considering the weak status of CBLIR's financial position, liquidation is the only feasible option," reads CBK's statement.
"Subsequently, CBK has today, April 16, 2021 appointed the KDIC as liquidator of CBLIR in terms of Sections 53(2) and 54(1)(a) of the Kenya Deposit Insurance Act, 2012.9," CBK said.
As such, the bank's assets will be sold off to pay any existing debts to its depositors, creditors and the general public.
Chase Bank was placed under receivership in 2016 when it failed to meet its financial obligations.
KDIC thus appointed KCB Bank Kenya Limited (KCB) as Manager of Chase Bank Limited (In-Receivership) (CBLIR), with the concurrence and approval of CBK.
This was intended to ensure the continued operations of CBLIR, leveraging on KCB's credentials as a strong bank with a solid brand, adequate human resources, and wide experience in the country.
In August 17, 2018, 75 percent of the value of deposits and 75 percent of the value of assets at Chase Bank were transferred to SBM Bank Kenya Limited (SBM Bank), a subsidiary of SBM Holdings Limited.