Previously top ranked tier-three commercial lender faces bank-run amid collapse fears
One of the senior managers was previously under probe over Sh100million transaction at a time the bank is facing a severe financial shortfall
A previously top ranked tier-three bank associated with a former late politician is on the brink of collapse over a multifaceted crisis ranging from massive liquidity shortfall, questionable insider lending and cooked books of accounts amid the ongoing bank-run resulting to clients’ hemorrhage.
One of the senior managers was previously under probe over Sh100million transaction at a time the bank is facing a severe financial shortfall.
This deficit has been termed as a significant threat to the bank’s ability to continue to operate which highlights the potential for collapse as opposed to remaining afloat.
Depositors have since commenced mass withdrawals over fears of losing their deposits if the bank finally goes under.
The mid-tier lender is also struggling to meet newly enforced capital requirements set by the Central Bank of Kenya (CBK).
The situation, compounded by internal leadership tensions and increasing regulatory pressure that threatens to destabilise the institution and potentially force it into a total shutdown.
All guns are now trained on the regulators, the Central Bank of Kenya (CBK) and the Kenya Deposit Insurance Corporation (KDIC) to ensure financial soundness and safety of depositors’ money.
