Chase Bank owners face massive losses in KCB take-over deal

Chase Bank’s shareholders were yesterday left facing massive dilution after the Central Bank of Kenya (CBK) announced that KCB Group had agreed to take a majority stake in the troubled lender as part of a plan to reopen its doors beginning Wednesday next week.

CBK Governor Patrick Njoroge told journalists at a press conference that the banking industry regulator, as Chase Bank’s receiver manager, had struck a deal that would see KCB buy an undisclosed majority stake in the troubled lender.