CBK accepts Mauritius lender’s offer to acquire Chase Bank assets

CBK accepts Mauritius lender’s offer to acquire Chase Bank assets

- in Business, News

Central Bank has accepted a Mauritius lender’s binding offer for the acquisition of assets and liabilities from Chase Bank.

The lender was placed under receivership in April 2016 after experiencing “liquidity difficulties” and being unable to meet financial obligations.

Group MD Duncan Kabui and chairman Zafrullah Khan later resigned amid growing public concerns over the health of the bank.

CBK governor Patrick Njoroge announced they had accepted the offer by SBM Holdings in a statement on Friday.

“The binding offer is accepted but still needs to be executed and operationalised,” he said, noting the decision was made on Thursday.

Njoroge said the transaction will ensure transfer of 75 per cent of the value of deposits currently under moratorium.

“It will also ensure the transfer of staff and branches of the existing CBLR operations. Non moratorium depositors will continue to have full unrestricted access to their funds,” he said.

Njoroge further noted SBM’s experience and expertise in Mauritius and other markets and that these will help improve Kenya’s sector.

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