The Nyandarua County Assembly is among the depositors left stranded following the setback at Chase Bank Limited after it was placed under receivership.
The County Assembly was hit hard after it emerged that over Sh50 Million of its funds, was in the account when the Central Bank of Kenya (CBK) placed Chase Bank under the management of Kenya Deposit Insurance Corporation (KDCI).
According to reports, the County's revolving fund which is managed by the County Assembly Service Board, was set aside to cater for car and mortgage loans for Members of County Assembly (MCAs).
The board’s chairman Wahome Ndegwa, however, indicated that there was no cause of alarm because the money could not be lost.
“We have been assured by Central Bank that depositors will get their money,” Ndegwa was quoted by the Nation.
According to a report by the Nation, Ndegwa was not able to confirm the exact money that was in the County's account during the time of closure.
The board had initially borrowed Sh80 Million to loan 43 MCAs, which they were still repaying.
Chase Bank was placed under receivership for 12 months over the CBK termed as unsound and unsafe financial conditions.
The move by the regulator comes after Chase Bank experienced liquidity difficulties and the recent resignation of two of its directors.
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