People read a notice from the Central Bank of Kenya taped to the closed entrance of a Chase Bank branch, after the bank was put in receivership in Nairobi, Kenya in this April 8, 2016 file photo. REUTERS/Siegfried Modola/Files
Chase Bank to reopen on Wednesday, KCB acquires majority stake
All Chase Bank branches will be reopened by next Wednesday after a deal signed this morning between Kenya Deposit Insurance Corporation and Kenya Commercial Bank.
Making the announcement on Wednesday, Central Bank governor Patrick Njoroge said KCB will acquire majority stake in Chase Bank after beating eight other institutions and banks that had expressed interest in the lender.
CBK said speed to reopen, credibility support and liquidity availability were key parameters for consideration in the proposal.
Shareholders of the bank had also proposed to inject more cash into Chase.
The bank was closed two weeks ago after a series of panic withdrawals triggered by massive insider loans and mounting bad debt will be revived.
CBK however said some banking services will not be immediately available after reopening.
Press Release following the CBK Governor’s Press Briefing earlier today