Family Bank clears the air on its books

Family Bank Managing Director David Thuku. The bank’s Managing Director and Chief Executive Officer David Thuku said by the end of first quarter of the next financial year, the institution is expected to have increased its branches to 100 from the current 93. (PHOTO: JENIPHER WACHIE/ STANDARD)

Family Bank is planning to increase its branches to 100.

The bank’s Managing Director and Chief Executive Officer David Thuku said by the end of first quarter of the next financial year, the institution is expected to have increased its branches to 100 from the current 93.

Eastleigh, Wangige and River Road are some of the areas marked for this expansion plan.

“We already have the necessary permits and we were to execute this expansion this year but due to several hiccups (already in the public domain), we had to push it,” said the CEO.

Panic withdrawals

The plans come after false rumours that the bank was set to be closed by the Central Bank of Kenya (CBK) on claims that it had a hand in the Sh791 National Youth Service (NYS) saga.

Mr Thuku however said the bank has not lost any ‘substantial’ amount of cash as a result of panic withdrawals.

“Yes, there were a little more withdrawals than usual, but that is not abnormal. Our customers do not believe in rumours,” he said.

Thuku said for the past week, the bank has witnessed ‘inflow and outflow’ of cash as those who withdrew their cash ended up depositing it again on realising that the social media information was baseless.

Already, the bank has engaged the Directorate of Criminal Investigation (DCI) to narrow down on those who started the rumours.

According to Thuku, the perpetrator was aiming at massive withdrawals “but it did not work”.
“We know the team on the ground will definitely make an arrest,” he added.

But following a lot of inquiries from customers, the bank was forced to send a text to their 1.7 million customers to assure them of the safety of their cash.

“Dear customer, thank you for always standing with Family Bank. We assure you of our commitment to serving better now and in the future,” read the text message.

Family Bank, Sidian (formerly K-Rep) and Faulu Micro-finance were fined Sh1 million each by CBK over the NYS paper trail.