CBK set to pick new investor in Chase Bank next month

The Central Bank of Kenya will next month pick a new investor to buy a majority stake in Chase Bank as part of efforts to fully revive the lender.

KCB Group, which is managing Chase Bank under receivership, said its role in reopening the lender is almost complete, paving the way for the regulator to call for bids from multiple investors interested in the buyout.

The Nairobi Securities Exchange-listed lender is expected to be among companies that will bid for Chase Bank, with the banking sector regulator set to pick the winner in September.

“KCB’s assignment at Chase Bank is complete,” KCB said in a statement.

The bank in April reopened all Chase Bank branches and reinstated services including ATM and money transfers, recording 3,000 new customers and net deposits of Sh152 million.

READ: KCB denies conflict claims in race to buy Chase Bank

KCB said it will cut its management role at the bank by half at the end of this month and exit fully by end of September. An independent due diligence process done under CBK’s Kenya Deposit Insurance Corporation is currently underway and will inform the evaluation of the bids.

For prospective buyers, Chase Bank represents an attractive franchise with 27,000 customers classified as small and medium sized (SME) businesses.
Chase Bank is also a banker to 341 non-governmental organisations and 147 savings and credit cooperative societies (saccos), each with an average membership of 9,200.

The lender, with 62 branches, is also a significant lender to the agricultural sector.
Rafiki Microfinance Bank and investment bank Genghis Capital are its subsidiaries.