In a new twist of events it has been unearthed majority share-holders of the recently collapsed Chase banks used shell companies registered in foreign companies to evade paying high taxes in Kenya. Ownership of the troubled Chase Bank, now under statutory management, has been traced to at least three offshore tax havens.
At least four of its largest institutional shareholders are in Cyprus and the Isle of Man in Europe, and Mauritius, where they exist only on paper.
While it is not illegal to own companies through shell companies, the practice is largely associated with individuals keen to conceal their wealth or evade taxes, as was revealed earlier this week in the now famous “Panama Papers”.
Majority shareholders of the bank, who include former chairman Zafrullah Khan, have over the years channeled their ownership through shell companies.