Chase Bank depositors to access 50pc of their deposits in January

Depositors at Chase Bank Kenya will be allowed to access 50 percent of their deposits from January and the rest over a three year period.

The bank in a statement said, “The first payment 50 percent of 75 percent to be paid under current and savings account respectively on 1st January 2018.”

“Of the first 50 percent day, 1 split will be: 25 percent to current account and 25 percent to savings accounts earning 7 percent interest per annum. The remaining 50 percent of 75 percent will move to term deposits, earning 7 percent interest per annum with access over three years payable at the end of each year in equal percentage,” said the bank in a statement.

However, non-moratorium depositors will continue to have full unrestricted access to their funds.

This is after Mauritian banking group SBM Holdings move to issue a non-binding offer to take over part of the Chase Bank’s assets and liabilities pending the completion of due diligence on the lender.

The deal announced by the Central Bank of Kenya and the Kenya Deposit Insurance Corporation will enable  Chase Bank customers to have limited access to their funds since the bank partially reopened last year.

“…this transaction will inter alia ensure a substantial recovery for depositors currently under moratorium and a transfer of a substantial number of staff and branches of the existing CBLR operations,” read a joint statement from CBK and the KDIC.

According to the Chairman of SBMH, K.C Li Kwong Wing, “SBMH started its Africa foray with the acquisition of the Fidelity Commercial Bank (FCB) in May 2017.  It acquired a small Tier 3 bank with a view to build scale on it over time. The opportunity has now arisen for it to grow inorganically.”

“The acquisition of certain assets and matched liabilities of the Chase bank confirms the realisation of SBMH Africa strategy. With this proposed transaction, SBMH aims at consolidating its presence in East Africa and at gearing up the operations of SBMK, with the ambition of becoming a tier 1 bank in Kenya in the medium to long-term,” he added.