Inspector General of Police Joseph Boinnet on Friday announced that blogger David Mukunzi Zawadi had been arrested and would be facing charges related to misuse of social media.
Mr Mukunzi is accused of peddling falsehoods that sparked anxiety over the fate of Chase Bank, prompting depositers to flock the bank and make huge withdrawals at once.
The unprecedented urge to withdraw money by customers on a single day, plunged the lender into a liquidity quagmire, prompting the Central Bank to take drastic measures.
"Chase Bank experienced liquidity difficulties following inaccurate social media reports and stepping aside of two directors, consequently it was not able to meet its financial obligations on April 6, 2016," CBK stated.
CBK Governor Patrick Njoroge revealed that they were forced to put the bank under receivership after the mass withdrawals caused by rumours that were spread on social media, indicating that the bank was going to close down.
Dr Njoroge said they would pursue the individuals who sent a whatsapp message stating that Chase Bank was going to close down due to huge loans.
“No bank has the deposits ready 100 percent. So it is clear that if one of us made a horrendous statement, you can cause a run or a crisis; and that is what actually happened. The bank could not sustain the loss for a period of time,” the governor clarified.
Boinnet warned the public to be wary of such messages and to avoid spreading lies to avoid being prosecuted.
Read also: Boinnet Orders Arrest of Chase, National Bank Bosses
The arrest of the blogger, however, sparked alot of reactions from a section of Kenyans who wanted Zawadi released.
Here are some of the reactions on Twitter following the arrest:
Why is it easy to arrest David Zawadi who nobody knows but extremely difficult to arrest directors who are well known.#BanditEconomy
— Eng. Gitonga (@GitongaJoseph) April 8, 2016
I hope the punitive measures & procedures for the bank directors & David Zawadi will BOTH run fairly, justly & equitably before the law
— Omore C. Osendo (@Conomore) April 8, 2016
Punishing social media users for alerting the public about collapsing Chase bank...while GoK protected looters and denied crisis existed.
— Saddique Shaban (@SaddiqueShaban) April 8, 2016
@Owaahh @JosephBoinett And they've already arrested David but for the management thieves they asking them nicely to report to the police
— Khadija MohChurchill (@khadijija) April 8, 2016
