Employees of Chase Bank are a worried lot ahead of an audit by the State Bank of Mauritius, which is set to take over some employees and branches.
Sources within the bank indicate that around 75 percent of the workers may be left jobless and are unsure about the new salary structures under their new owner.
The Central Bank of Kenya on Monday stated that it had received the initial offer from State Bank of Mauritius (SBM), setting the stage for due diligence expected to now commence.
[caption caption="Chase Bank Branch in Nairobi CBD"]
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“The non-binding offer includes the acquisition of certain assets and matched liabilities from Chase Bank Ltd in receivership,” the CBK notice to the public read.
SBM is expected to assess the performance of Chase Bank’s 62 branches and Rafiki Microfinance for productivity, profitability and overhead costs.
A source at SBM, formerly Fidelity Bank, said the Mauritius lender did not review workers’ salaries and benefits when they acquired it for Sh100 Billion in May this year.
Once the audit is complete, SBM is expected to table a concrete and binding offer at the end of the month.
The acquisition of Chase Bank's prime assets is expected to be completed by December 31.
CBK believes that SBM will provide stability for the banking sector while offering depositors a less painful path to recover part of their money stuck in Chase Bank for one-and-a-half years.
[caption caption="Central Bank of Kenya"]
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About 3,100 large depositors whose money was stuck with the lender will have access to a quarter of it, Sh14.25 Billion, which will be deposited in a current account.
Another Sh14.25 Billion will be put in a savings account earning an interest of seven percent which can either be withdrawn or saved up with the Mauritius lender.
