Five Suitors Lined Up to Buy Chase Bank

According to the latest statement by Central Bank of Kenya (CBK), there are five suitors seeking to buy Chase bank, which was placed under receivership earlier this month.

We have received upwards of five institutions, both local and international, wanting to buy the bank. We are evaluating this interests,” said Dr. Njoroge during a press briefing on Friday.

According to a report by Business Daily last week, KCB Group, I&M, Centum Investments, Equity, and Commercial Bank of Africa are the corporations looking to purchase Chase Bank.

Dr. Njoroge, the CBK governor said that CBK, which regulates financial institutions, is considering reviving Chase Bank. He noted that reviving Chase Bank will be much easier than in the case of Imperial Bank. Imperial bank was placed under receivership in October 2015.

With Chase Bank, Dr. Njoroge said that the assets could be identified and sold while there was willingness by the shareholders and directors to move quickly and resolve the outstanding matters like completions of registration of collateral documents for the previously unsecured loans. On the other side, with Imperial Bank, there was outright fraud that needed to be dealt with.

Chase bank collapsed after there was massive withdrawals of Sh.8 billion from the bank in a single day. It was later established that the bank had irregularly given 16.6 billion in loans. According to the external auditor, the institution’s finances could not be established.

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