Chase Bank’s statutory management by Central Bank of Kenya (CBK) has come calling once again after the bank’s books failed to turn out as expected.
The bank was put under receivership on Wednesday, a day after senior managers were fired. CBK said that the receivership was to safeguard deposits.
Chase Bank came to be in 1995 after several people acquired a 60% stake in the then United Bank (Kenya). This was after the investors paid approximately Sh95 million. At the time, the bank's headquarters were in Kisumu.
Then, United Bank (Kenya) was put in receivership by CBK.
In 1996, the bank opened for business under the new owners and its present name. In 1997, the bank's only branch at the time was relocated from Kisumu to Nairobi.
On Wednesday, CBK appointed the Kenya Deposit Insurance Corporation (KDIC) to assume the management, control and conduct of the affairs and business of the institution.
CBK said KIDC is to exercise all the powers of the institution to the exclusion of its Board of Directors and advise CBK of an appropriate resolution strategy as soon as is practicable and not later than twelve months from date of appointment.
The statement said, “Chase bank has been experiencing liquidity difficulties and consequently, it was not able to meet its financial obligations on April 6, 2016.
The bank’s chairman Zafrullah Khan and group managing director Duncan Kabui stepped aside on Wednesday following concerns over the credibility of the bank’s financial statements.