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SA hotel chain’s Sh384m locked in Chase Bank

A CHASE BANK BRANCH ALONG MAMA NGINA STREET IN NAIROBI. FILE PHOTO | SALATON NJAU | NMG
A CHASE BANK BRANCH ALONG MAMA NGINA STREET IN NAIROBI. FILE PHOTO | SALATON NJAU | NMG 

South Africa’s hotel group City Lodge has Sh384.8 million locked up at Chase Bank, the international hotels chain has disclosed.

City Lodge, which owns Nairobi’s Fairview Hotel and Town Lodge, says in its latest annual report that the deposit was significant enough for its recoverability to be considered a key audit matter.

“The group, through a wholly owned subsidiary, has deposits with Chase Bank (Kenya) Limited amounting to Sh384.8 million at year-end,” City Lodge says in the report.

“The group’s ability to access the deposits is restricted and due to uncertainty about whether the deposits are fully recoverable given the receivership process, an impairment of R24 million (Sh182 million) has been recognised at year-end.”

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