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Chase Bank officially transforms to SBM Kenya

By Otiato Guguyu | Published Mon, August 20th 2018 at 14:14, Updated August 20th 2018 at 14:20 GMT +3

NAIROBI, KENYA: Calm and confidence has greeted the reopening of Chase Bank in State Bank of Mauritius colours following the country’s first carve out deal in banking.

Kee Chong Li Kwong Wing, Chairman of SBM Holdings Ltd said the bank has taken up 825 staff from Chase, some assets and liabilities as well as several branches.

“We have taken up over 825 staff, that is 825 Kenya families which we are looking after,” Mr Wing said.

About 180,000 new customers who deposited money in Chase Bank after it was placed under receivership will have full access to their Sh5.9 billion.

The rest of the 3,100 customers whose money was stuck with the ailing lender will have access to a quarter— Sh14.25 billion— which will be deposited in a current account.

Another Sh14.25 billion will be put in a savings account earning interest of seven per cent, which can either be withdrawn or saved up with the Mauritian lender. The rest of the Sh28.5 billion will be set aside as term deposits attracting seven per cent, and will be paid to the customers for a period of three years in tranches of Sh9.5 billion each.

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SBM entry into the Kenya market marks a milestone for the Indian Ocean island lender as it seeks a piece of the larger East African market.

Chase Bank has been under receivership since April 2016 and has navigated several hurdles to open its doors yesterday including last minute bid by bondholders to enforce their interests.

Some three depositors had also petitioned parliament through Kiambu MP Jude Njomo to have the deal investigated, including the terms, financing of the fees payable to all parties as well as the transition advisors and ownership of all the firms involved in the transactions caused the delays.

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