Hundreds of customers on Thursday stormed Chase Bank Kisumu Branch at Oginga Odinga Street demanding for answers over the closure of the bank without any prior notification.
The bank which remained closed for the better part of the day has not given any official communication over the closure leaving its customers in panic.
Ben Alando who has been banking with the bank for the past three years expressed concern over the silence meted upon them at the bank’s branch in Kisumu.
He says they were blocked by the policemen from accessing the bank premises.
“On Wednesday evening I was at the bank and even spoke to the officials and deposited a sum of Sh50,000 but they did not give any communication that the bank was closing shop," recalled Mr Alando.
Mr Alando says he was shocked when he went to the ATM just adjacent to the bank and found it locked as well.
He then tried to withdraw Sh40,000 from his account from the Cooperative Bank and Kenya Commercial Bank but the transactions were declined.
The bank which was licensed in 1996 as a banking entity in Kenya was on Wednesday placed under receivership by the Central Bank of Kenya.
In a press release that was circulated to the public, CBK cited that Chase Bank experienced liquidity difficulties and was not able to meet its financial obligations.
CBK has however appointed the Kenya Deposit Insurance Corporation (KDIC) as a receiver of Chase Bank Limited.
This takes effect as of April 7 up to a period of 12 months within which they are expected to audit the bank and recommend the possible remedy to the bank woes.
“In light of the above, CBK has appointed KDIC to assume the management, control and conduct the affairs and business of the institution and exercise all powers of the institution to the exclusion of the Board of Directors and advice CBK on an appropriate strategy as soon as it is practicable and not later than 12 months from the date of appointment,” read the statement in part.