The Central Bank of Kenya (CBK) has put Chase Bank under receivership for 12 months.
This is due to banking regulation following unsafe financial conditions affecting the bank and protection of stakeholder’s interests.
“Chase Bank experienced liquidity difficulties following inaccurate social media reports and stepping aside of two directors, consequently it was not able to meet its financial obligations on April 6, 2016,” CBK said in a press statement on Thursday.
CBK has appointed the Kenya Deposit Insurance Corporation (KDIC) to assume the management, control and conduct of the affairs and business of the institution.
Chase Bank chairman Mr Zafrullah Khan and group managing director Mr Duncan Kabui stepped down on the ground of the credibility of the bank’s financials.
The Chase Bank will then be managed by KDIC and no transaction will be honored in any way if done after the receivership date.
The revealed financial statements and disclosures are extracts of the bank’s financials as audited by Deloitte and Touche and received a qualified opinion,” the bank said in the footnotes of its financials, meaning the information provided to auditors was limited in scope.
