The Central Bank of Kenya has blocked 10 former senior executives at troubled Chase Bank from getting new jobs in other banks.
This is in line with guidelines that require every bank to seek clearance from the regulator upon retaining services of any person at a senior level.
Also affected is a former Dubai Bank manager. It is reported that some of the former Chase Bank employees had sought employment at Gulf African Bank and Sidian Bank but had not been cleared.
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According to a report on Business Daily, Gulf African Bank confirmed the same, adding that they had no approval power.
“They are yet to get the clearance, and meanwhile we have not granted them any approval power,” stated CEO Abdalla Abdulkhalik.
Mr Abdulkhalik further divulged that the CBK also raised concern on the suitability of the employees.
In 2016, CBK placed Chase Bank under receivership following liquidity problems.
The regulator noted that the bank experienced cash flow difficulties following 'inaccurate' social media reports and the stepping aside of two of its directors.
The bank was not able to meet its financial obligations on April 6, 2016.
Earlier this year, Mauritian lender, SBM Holdings, was given the green light to take over Chase Bank.
As part of the deal, SBM is set to acquire the lender's carved out assets and liabilities.
The deal will also see the Mauritius-based lender absorb Chase Bank’s staff estimated at 1,300 and about 62 branches.
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