Investors and Entrepreneurs Feel the Heat of Chase Bank Going Under

Chase Bank, which was placed under receivership by the Central Bank of Kenya a few weeks ago has brought untold mystery to many entrepreneurs and investors, some of which were large corporations banking with Chase Bank as at the time of the incident.

Kenya Tea Development Agency has announced that by the time Chase Bank was going down, the agency had a total of 1.9 billion shillings at the bank. This has made it difficult for farmers who depended on the cash to run their activities extremely difficult.

This not the first time that KTDA is suffering from banks being put under receivership with their money in them. Last year, the agency had 2.9 billion shillings at Imperial Bank by the time the bank went down. The agency is yet to receive the amount.

Chase Bank was a bank of entrepreneurs where many upcoming economists had banked all their resources at the bank given the numerous attractive products that the bank offered. Most small businesses that had been set up by this entrepreneurs are at risk of coming down following their funds being held at Chase Bank.

Peter runs a small bakery along shop in Githurai Nairobi. He is a young man who invested heavily in his small business and even had managed to hire ten assistants.  When Chase Bank was placed under receivership, his business received a major blow. All his funds and life savings were at Chase Bank. He has not paid his assistants for the last month with this month being already halfway. With a business to run and with no way to have access to his money, Peter is a worried and frustrated young man. Peter is not alone, a woman in Kisumu who also had all her life savings at Chase threatened to commit suicide if she will not have access to her money. According to the woman, the savings were everything and they often helped her with her medication.

It is not only entrepreneurs or depositors who have been affected by the closure of Chase Bank but students too. Prior to the going down of Chase Bank, the County Government of Trans Nzoia had deposited a total amount of 68 million shillings to help fund the education of students from poor families. The County Government then issued Cheques to students to take to their institutions but they have been rejected by the respective institutions.

Article by Juma Fred.