SBM to finally take over Chase Bank

The Central bank of Kenya yesterday announced that SBM will have six weeks to take over Chase Bank assets and liabilities.

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Central bank Governor Dr. Patrick Njoroge said ‘the acquisition and assumption shall take effect on 17 August 2018’.

Chase Bank has been in receivership since April of 2016 after it experienced a run that almost crippled it. It will now reside with KDIC as a shell as CBK pursues its lost assets through litigation.

Depositors have waited to know when they will access some of their funds under the agreement that would see them transact part of their cash off SBM counters.

About 180,000 new customers who deposited money in Chase Bank after it was placed in receivership are supposed to have full access to their Sh5.9 billion.

The rest of the 3,100 customers whose money was stuck with the lender will have access to a quarter of their cash (Sh14.25 billion) which will be deposited in a current account.

Another Sh14.25 billion will be put in a savings account, earning interest of seven percent, which can either be withdrawn or saved with the Mauritian lender.

The rest of the Sh28.5 billion will be set aside as term deposits attracting seven percent and will be paid to the customers over three years in tranches of Sh9.5 billion each.

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