KCB to take over management of Chase Bank, will reopen next week

KCB Group is set to acquire a majority stake in the fallen Chase Bank, which will now reopen on Wednesday next week.

The Group could acquire the bank – that was placed in receivership on April 7 – through its Kenyan subsidiary, KCB Bank Kenya (KCB).

“[The regulators] has today reached understandings with the KCB Bank Kenya Ltd (KCB) on modalities to reopen Chase Bank Ltd) in the next few days and the eventual acquisition of a majority stake in the bank,” said the Central Bank of Kenya (CBK) in a statement.

Online and mobile banking services will also become available on the day the bank is reopened.

“All Chase Bank Ltd (In Receivership) branches will open by Wednesday, April 27, 2016. The online and mobile banking services will also become available. However, branches may initially offer limited banking services,” the regulator said.

Customers will have access to their deposits to the maximum of Sh1 million as soon as the bank is re-opened next week, the CBK said.

“CBL customers will have immediate access to their deposits up to a maximum of Sh1 million,” said the CBK.

Central Bank added that 167,290 accounts, which is equivalent to 97 per cent of accounts or six per cent of total deposits, will have their funds available in full.

“KCB’s credentials as a strong bank with a solid brand, adequate human resources, and wide experience in the country, will facilitate safeguarding the interests of CBL’s depositors and creditors, and the wider public interest. [The] CBK will continue to monitor closely developments in CBL [Chase Bank],” said the CBK.