Chase Bank to Re-open Next Week Wednesday, KCB Acquires Majority Stake

Chase Bank to Re-open Next Week Wednesday, KCB Acquires Majority Stake

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Chase Bank will be reopened next week Wednesday after the Central Bank of Kenya agreed with Kenya Commercial Bank (KCB) on modalities to bring the collapsed lender back on its feet.

The Central Bank of Kenya and the Kenya Deposit Insurance Corporation reached an understanding with the KCB on modalities to reopen the bank put under receivership and a possible acquisition of a majority stake in it.

Customers will now be able to access their funds through KCB which will facilitate the safeguarding of the interests of Chase Bank’s depositors and creditors, and the wider public interest.

Chase Bank customers will access their deposits up to a maximum of Sh1 million. Those with deposits in excess of Sh1 million will wait for further details as their deposits will be made available in a “structured manner in the near future”.

CBK governor also expressed confidence in KCB’s ability to take over the collapsed lender assuring customers that the lender will be liquid going forward.

The CBK had received nine proposals, including six from local investors, two foreign and one from existing Chase Bank shareholders. The bank’s shareholders had proposed to inject more cash for its revival.

“Speed to reopen, credibility support and capital liquidity and availability were the key factors considered in the proposal,” Njoroge said.

He said KCB was chosen because it offered to re-open the bank immediately and has credibility and cash to support operations.

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