On a chilly morning in early 1993, three bankers sat in the Central Bank of Kenya (CBK) governor’s office, making a last-ditch plea to stave off the closure of Equity Building Society (EBS), which had limped into its ninth year of operation under the weight of insolvency.
The CBK’s decision to chain the doors of the insolvent savings and loans society came after a complaint by one of the three major deposit holders in the society that it was using customer deposits to fund operations, having long exhausted headroom in its capital.
