ASSETS TO BE SOLD OFF

CBK approves liquidation of Chase Bank over weakened finances

Chase Bank's assets will be sold off to pay any existing debts.

In Summary

• In a statement on Friday, CBK governor Patrick Njoroge said Kenya Deposit Insurance Corporation will execute the liquidation process.

• A special audit report by Deloitte released after CBK placed the bank into receivership in 2016 shows the man at the centre of Sh14.9 billion internal bank heist was to earn $50,466 (Sh5.15 million) a month.

Chase Bank
UNDER RECEIVERSHIP: Chase Bank
Image: FILE

CBK has approved the liquidation of Chase Bank citing a weakened financial position.

In a statement on Friday, CBK governor Patrick Njoroge said Kenya Deposit Insurance Corporation will execute the liquidation process.

This means that Chase Bank's assets will be sold off to pay any existing debts to its depositors, creditors, and members of the public.

"Liquidation would facilitate the orderly resolution of the residual assets and liabilities in accordance to the law," he said.

Njoroge said KDIC will release a statement on the liquidation in due course.

A special audit report by Deloitte released after CBK placed the bank into receivership in 2016 shows the man at the centre of Sh14.9 billion internal bank heist was to earn $50,466 (Sh5.15 million) a month.

The former Chase Bank Kenya chairman Zafrullah Khan awarded himself a three-year consultancy contract for unspecified projects in the bank, 16 months before it collapsed on April 7, 2016.

A former staffer at the bank told the Star the Harvard educated money market honcho generously offered everyone he met, regardless of social-economic status, a warm smile partly hidden in his signature moustache.

In 2018, the Central Bank of Kenya accepted a binding offer from the SBM holdings that will cover a portion of the assets and liabilities of Chase bank.

The bank which boasts of assets in excess of $4 billion (Sh412 billion) entered Kenya by taking over Fidelity bank in May 2017.