Kenya's Chase Bank reopens branches next week

Chase Bank customers line up to access services in one of its branches (PHOTO: FILE)

NAIROBI, KENYA: Chase Bank Limited (CBL) customers from next week will be able to access services following reopening expected on Wednesday April 27.

In a communication from the Central Bank, all Chase Bank branches, online and mobile banking services will become available by Wednesday, April 27, 2016 though with limited banking services.

“Chase Bank customers will have immediate access to their deposits up to a maximum of Sh1million. On this basis, 167,290 accounts (equivalent to 97 percent of accounts or 6 percent of total deposits) will have their funds available in full. Any new deposits will thereafter be immediately available,” said CBK.

“Deposits in excess of Sh1 million will be made available in a structured manner, details of which will be released in the near future while the moratorium on payments to creditors and lenders remains in place,” said CBK statement.

The announcement made on Wednesday results from Kenya Deposit Insurance Corporation (KDIC)-Kenya Commercial Bank (KCB) understanding  on modalities to reopen Chase which went under receivership due to panic withdrawal.

KCB will make available a management team that will assist in the receivership and will also undertake a detailed due diligence review of CBL.

“This will inform decisions relating to KCB’s interest in a majority stake.”

The industry regulator is expected to offer additional information about this process, including the timeline of an acquisition and the exit from receivership in due course.

At a press briefing Central Bank of Kenya Governor Patrick Njoroge said he had received nine indications of interest in the mid-sized lender that was put into receivership in April.