Chase bank to reopen its doors in Kenya

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It is reprieve for customers of Chase Bank Kenya, following the revelation that the bank will be resume its operations in Kenya next week Wednesday April 27, 2016.

Approximately 167, 290 customers are set to access their money, customers with deposits below 1 million Kenya shillings will be allowed to withdraw their money, which translates to at least 97 per cent of the accounts held at the bank.

The reopening follows an agreement between two government authorities, after which the Kenya Commercial Bank (KCB) was appointed the facilitator and manager of Chase Bank’s affairs.

The meeting between the Central Bank of Kenya (CBK) and the Kenya Deposit Insurance Corporation reached an understanding with KCB on modalities to reopen the bank.

The deal announced by CBK Governor Dr.Patrick Njoroge Wednesday morning, will also see KCB manage both the assets and liabilities of Chase Bank. This is in line with the provisions of the Kenyan constitution under Sections 44(2)b and 44(3) of the Kenya Deposit Insurance Act.

“All the branches will be open as from Wednesday next week, even though customers are advised that the branches will initially offer selected services,” CBK Governor Njoroge said.

The governor added that any amounts above 1 million shillings will be available for withdrawal in the near future and that accomplices in the embattled bank’s saga will face justice.

“It is my interest to reassure Kenyans that all those who led to the collapse of the bank (now under receivership) will face the consequences,” Njoroge note.

Chase bank collapsed earlier this month after at least 8 billion shillings was withdrawn from the bank in just one day. It was later revealed that the bank had loaned close to 16.6 billion shillings illegally.

Players in the banking sector such as Centum Investments, I&M Bank, Equity Bank, Commercial Bank of Africa and KCB then expressed interest in acquiring the troubled institution.

“I’m happy it is reopening, this is good news, it has been a nightmare not accessing my Ksh 57,000 I hope I get it all next week,” one Emmanuel Odinga told this website.

“I deposited 3 million shillings with the bank. My lifetime savings will not just go under the drain,” said an infuriated Rosemary Wanja.

A businesswoman based in the lakeside city of Kisumu also expressed her concerns over money meant to facilitate her business, after she deposited 320,000 shillings a week before the closure.

The news of the reopening come as governors in the country warned that counties could soon file bankruptcy since a significant amount of funds meant for county development projects have been locked up in the bank. Urging the government to fast track the availability of the funds, Council of Governors chairman Peter Munya further stated that a financial crisis is imminent.
When contacted over the announcement that they would take up control at Chase Bank, KCB chief executive officer Joshua Oigara, declined to comment.