The Central Bank of Kenya (CBK) has approved the liquidation of Chase Bank’s assets that were not included in the SBM Bank buyout.
The Kenya Deposit Insurance Corporation (KDIC) has been ordered by the regulator on Friday to begin liquidating the remaining funds, in an effort to save money for customers who had more than Sh100,000 in the bank.
“KDIC sent the receiver’s report to CBK on April 7, 2021, proposing that Chase Bank in receivership be liquidated. The study indicates that, given Chase’s financial situation, liquidation is the only viable option,” according to CBK.
On August 17, 2018, 75 percent of the value of deposits at CBLIR and 75 percent of the value of assets were carved out and transferred to SBM Bank Kenya Limited (SBM Bank), a subsidiary of SBM Holdings Limited.
This followed a transparent Expression of Interest process. The transaction enabled CBLIR depositors to access a significant portion of their frozen deposits.
Following the carve out and transfer, KCB’s management contract ended and KDIC continued managing the remaining 25 percent of the value of deposits along with other assets and liabilities that remained in CBLIR.
On April 7, 2021, KDIC submitted the Receiver’s Report to CBK recommending that CBLIR be liquidated. The report indicates that considering the weak status of CBLIR’s financial position, liquidation is the only feasible option.
