Chase Bank chairman Mr Zafrullah Khan and group managing director Mr Duncan Kabui have been asked to step aside for investigations following concerns over the credibility of the bank’s financials.
“Following the publication of the 2015 financial statements Mr Zafrullah Khan and Mr Duncan Kabui have stepped aside from the positions of chairman and Group Managing Director respectively,”
addressed the bank to Nation
Chase Bank has attracted attention after its earnings dropped from a profit of Sh2.3 billion in 2014 to a loss of Sh742 million in 2015. Insider loans and advances jumped from Sh1 million to Sh10 million in the period under review. While non performing loans jumped from Sh3 billion in 2014 to Sh11 billion in 2015
CBK governor told reporters that the high non performing loans in the sector could have been as a result of weak lending policies laced with management failures and interests.
Following the order to step aside, CBK will implement stringent checks including IT audits among other investigations to verify the unimaginable down-fall in profits..
CBK Governor did not comment on the futurity and health of Chase Bank as many Kenyans on social media speculates of its closure.