Chase Bank Depositors To Receive Ksh 500,000 Each After Liquidation

Depositors of Chase Bank that is currently under receivership will receive a maximum of 500,000 shillings each, according to a statement released by Kenya Deposit Insurance Corporation (KDIC).

“The depositors of Chase Bank, in liquidation, become the first beneficiaries to be paid the enhanced insured deposit amount of a maximum of Sh500,000,” it said Tuesday in a statement.

KDIC disclosed that more information will be released soon about the liquidation and payment of depositors process. The bank was placed under receivership by the Central Bank of Kenya in April 2016.

The Central Bank of Kenya (CBK) approved the liquidation of 25 percent of assets belonging to the defunct Chase Bank Limited. Chase Bank was placed under receivership on April 7, 2016, under the Kenya Deposits Insurance Corporation (KDIC).

Read More:

• CBK Approves Liquidation Of 25% Chase Bank Limited Assets
• SBM To Inject Additional 60 Million Dollars Into Chase Bank Kenya

In August 2018, SBM Bank Kenya bought 75 percent of the valuable assets of Chase Bank Limited leaving 25 percent of the assets to the Central Bank of Kenya and the Government of Kenya.

“75 percent of the value of deposits at Chase Bank Kenya and 75 percent of the value of assets were carved out and transferred to SBM Bank Kenya Limited,” said CBK in a statement.

At the same time, Kenya’s Capital Markets Authority (CMA) commenced its enforcement proceedings against former board members of Imperial Bank Limited (IBL) over oversight failure.

In a statement, CMA said that the board members failed “to provide oversight in the preparation, approval, and publication of the Information Memorandum for a 2 billion shilling medium-term note issue and on their failure to report the financial statements fraud to CMA and the investing public when it came to their knowledge on 21 September 2015, a day before the bond was allotted to the bondholders.”

Read More: Nakumatt’s Liquidation Deadline Extended To February 2021