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Kenya's 'troubled' Chase Bank to reopen on April 27

Kenya's 'troubled' Chase Bank to reopen on April 27


Kenya’s Central bank has given the all clear for the troubled Chase Bank to reopen.

This was after the central bank accepted a proposal by Kenya Commercial Bank (KCB) to acquire majority stake in the mid-tier bank.

All 62 branches of the bank are expected to become fully operational by Wednesday April 27.

Chase was closed for two weeks after it was put into receivership on April 7.

The move was part of efforts to clean up the financial sector of east Africa’s largest economy.

It was also prompted by the bank’s liquidity problems following massive insider loans which triggered panic withdrawals by customers.

An audit showed that the bank had loaned some 80 million dollars to its directors and its bad debts had shot up to 100 million dollars.

When the bank reopens, customers will be allowed to withdraw up to one million Kenyan shillings ($10,000).

Kenya Commercial Bank (KCB) which has been appointed to manage Chase will hold the largest stake in the bank and spearhead its restructuring.

Central Bank Governor Patrick Njoroge told a news conference he had received nine indications of interest in the mid-sized lender.

News Agencies