The Central Bank of Kenya (CBK) has announced that the Kenya Commercial Bank (KCB) will take over management of troubled Chase Bank Limited.
Following the agreement, all Chase Bank branches will re-open next week Wednesday.
“All Chase Bank Ltd (In Receivership) branches will open by Wednesday, April 27, 2016. The online and mobile banking services will also become available. However, branches may initially offer limited banking services,” the regulator said.
Chase Bank customers will have access to their deposits upto a maximum of Sh1 Million.
However, depositors with more than Sh1 Million will have to wait longer before communication is given on how they can access their deposits.
CBK is also working on modalities in which KCB will acquire a controlling stake in the collapsed bank.
Last week Friday, CBK Governor Patrick Njoroge revealed that the regulator had received five offers from companies which were willing to purchase the bank.
"We have received upwards of five institutions, both local and foreign, wanting to buy the bank. We are evaluating this interests," said Njoroge.
However, Njoroge failed to give specific names of the said institutions which were willing to rescue the fallen giant in Kenya's banking industry.
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Chase Bank under the receivership of Kenya Deposit Insurance Corporation (KDCI) a fortnight ago after the institution misreported its insider loans and the resignation of two of its directors.
What followed were mass withdrawals from depositors after innacurate social media reports sparked off rumors of the bank's collapse.
