Chase bank branch. [Photo/the-star.co.ke]Chase Bank will remain under receivership for six weeks after a depositor moved to court seeking for an extension.
The receivership period was set to end on Saturday.
In a matter mentioned yesterday at the High Court in the presence of representatives of the depositor, Kenya Deposit Insurance Corporation (KDIC) and Central Bank of Kenya (CBK), the court said that it will hear the application on November 14.
CBK had said the decision by the High Court to adjourn the matter to next month means the bank will now have to remain under receivership until the application is heard.
“In the meantime, the status quo would be maintained... the time of the receivership would be frozen from today (yesterday) until further orders of the Court,” said CBK.
At the same time, Chase Bank, CBK and the receiver manager have invited depositors for a meeting to update them on the status of the lender, which was put under receivership on April 7 last year.
Last month, CBK Governor Patrick Njoroge said the regulator was still looking at the selected bidders’ proposals to pick on an investor that will save the bank.
“To be honest, this has taken longer than we were expecting if you look at the timelines we published before. This (Chase Bank resolution) is much more complicated than doing tax returns or preparing accounts of a company,” Njoroge said in a recent event.