Kenya Railways Corporation (KRC) managing director Atanas Maina on Wednesday revealed to the national assembly public investments committee that the cooperation had deposited Sh800 million in Chase Bank three weeks before it was placed under statutory management.
This is after the committee’s chair Eldas MP Adan Keynan said it was suspicious that the Chase bank deposits were done three weeks before it was put under receivership.
Chase bank was taken over by the central bank of Kenya on 7th April after a run on deposits and the stepping aside of two of its directors raised fears that it would be unable to repay customers.
KRC was initially working with KCB and Stanbic but expanded to include Chase bank, United Bank of Africa and Consolidated bank.
Treasury expressed concerns over the small banks in terms of market share and asset base that the KRC was choosing to conduct business with.
Maina, however, said the decision to increase the panel of banks was made following low rates that were being offered by its banker, KCB.