Former Chase Bank Chairman Mohammed Zafrullah Khan will be spending the second night in custody after he was arrested on Tuesday night by detectives from the Banking Fraud Unit.
Khan, who was apprehended at his Nairobi home, spent the night at the Kileleshwa Police Station and was arraigned in court on Wednesday morning.
Mr Khan was charged with conspiracy to defraud Chase Bank of Sh1.7 Billion. He, however, denied the charges.
The court will determine his bail on Thursday, June 29, 2017.
Earlier on, Director of Public Prosecutions (DPP) Keriako Tobiko had ordered Khan to be prosecuted alongside six other senior bank managers.
Banking Fraud Unit Head Ngatia Iregi stated that the other bank managers had not yet been found.
"They know they are supposed to take plea and it is upon them to come forward to make things easier," Iregi stated
Chase Bank was placed under receivership for a year after suffering a huge loss for the financial year 2015.
Khan was accused of acquiring his wife, Shehla Khan a vintage Ferrari Dino worth Sh45.5 Million and a limited edition Chevrolet Corvette for Sh12.7 Million using Chase Bank funds without following due process.
Khan resigned alongside Managing Director Duncan Kabui following public concerns over the financial status of the bank.
[caption caption=" Mohammed Zafrullah Khan "]
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