A former top director of troubled Chase Bank, now under receivership whose overriding role at helm of the crippled bank has finally got a soft landing in a top government parastatal.
Parmain Ole Narikae has been appointed as the Chief Executive Officer of the Kenya Industrial Estates (KIE) through a Kenya Gazette Notice by Industrialisation Secretary Adan Mohammed.
At Chase Bank, Narikae served as the director of External and Regulatory Affairs a central portfolio of assessing bank’s liquidity soundness before the bank was placed under receivership.
He was also in charge with the administrative co-ordination of the various functions towards the realization of Bank’s objectives as well as the development of capabilities of personnel in the Bank.
Narikae was also the chairman of the Chase Group foundation. The bank was placed under receivership after a run on deposits triggered by the ejection of two directors and restatement of accounts, which revealed huge non-performing loans.
Chase Bank’s flawed loan issuance system saw it lend billions of shillings unprocedurally in what nearly brought it down. CBK said the directors had awarded themselves 15-year interest-free loans under the guise of Islamic banking.
Chase Bank’s 57 branches re-opened on April 27 under the management of KCB, working with the Kenya Deposit Insurance Corporation (KDIC). The SME-focused lender reported a surprise Sh743 million loss for year ended 2015 after re-stating provisions for bad debts.
Irregular insider borrowing camouflaged as Musharakah — a sharia compliant financing used by Islamic banks — was previously classified as ‘other assets and interest receivable’ in the balance sheet.
Chase Bank re-opened in April this year after it was unexpectedly placed under receivership by the Central Bank of Kenya (CBK) on April 7 owing to liquidity problems created by a run on deposits.
Adan appointed Narikae under the State Corporations Act (Cap. 446) in a Gazette notice number 6784.
“In exercise of the powers conferred by the State Corporations Act, the Cabinet Secretary for Industry, Trade and the Co-operatives appoints—Parmain Ole Narikae to be the chief executive officer of the Kenya Industrial Estates Limited, for a period of three (3) years, with effect from the 5th September, 2016,” said Mr Mohammed in the notice dated 3rd August, 2016.
KIE is chaired by Rehema Jaldesa while directors in the board include Opiyo Elsie Achieng, Lucas Kirui, Bob Karina, Chebet Alaro Evelyne and Charles Kigen. Treasury Principal Secretary Kamau Thugge, Industrialisation Principal Secretary Julius Korir are members of the board of directors at KIE.