A woman was arrested on Friday for spreading a malicious report claiming that Family Bank was about to be put under receivership.
Christine Gachiko Njeri, 35, - a businesswoman in Nairobi - was arrested in her house by detectives from Banking Fraud Investigation Unit.
The unit's boss Ngatia Iregi said they had been investigating the matter since Wednesday when the message started to spread on social media.
He added his officers deployed technology to make the strides and hoped more suspects will be caught in the probe and face charges.
The message had apparently caused panic among the bank customers with some rushing to withdraw their cash.
This comes as Family Bank on Thursday
assured customers of a strong financial position amid rumours of financial hurdles and placement under receivership.
In a statement on Friday, the bank had said the source of the message has been under investigations by the Directorate of Criminal Investigations.
"We reassure our 1.7 million customers that we are open for business and you can count on us to continue serving you,” the bank, in a statement, said.
"Rest assured that we will live up to your expectations," Family Bank said, adding that it was in a strong financial position.
The bank further indicated that they are well within the statutory requirements as governed by Central Bank of Kenya.
"A fact that is easily confirmed through the return that we make as required by law," the statement reads in part.
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The rumours came days after Central Bank Governor Patrick Njoroge endorsed the prosecution of the bank's top officials over the Sh1.6 billion NYS scandal.
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Family Bank chairman Wilfred Kiboro asked customers to ignore the "negative statements and malicious rumours" that he said were aimed at tainting the bank's image.