The Kenya Deposit Insurance Corporation (KDIC) has started to process payment to remaining Chase Bank depositors as liquidation of the lender commences.
KDIC says depositors of Chase Bank In-Liquidation will become the first beneficiaries of an enhanced insured deposit of a maximum payment of Kshs. 500,000 while creditors wait.
KDIC which has been the receiver since 7th April 2016 was appointed as the liquidator for Chase Bank Limited In-Receivership (CBLIR) by the Central Bank of Kenya (CBK) on 16th April 2020 following the Receiver’s Report recommending for liquidation of the troubled lender.
“…considering the weak status of CBLIR’s financial position, liquidation was the only feasible option to facilitate the orderly resolution of the residual assets and liabilities of CBLIR in accordance with the Laws of Kenya to protect the interest of CBLIR depositors, its creditors and the wider public interest,” read KDIC report.
KDIC has been managing 25% of the value of deposits, other assets and liabilities after SBM Bank Kenya acquired 75% of the value of Chase Bank deposits along with other assets on 17th August 2018.
According to a statement by CBK released on Friday, 162,970 deposit accounts equivalent to 97% of the depositors have already been paid.
KDIC expects to release additional information on the liquidation and payment to depositors in due course.