Ajabu Africa News

PHOTO:

Customers of Chase Bank's Rafiki Deposit-Taking Microfinance gather at its Biashara Street offices in Nairobi following the bank's placement under receivership over liquidity problem, April 7, 2016. Photo/ENOS TECHE

By:

NANCY AGUTU

Posted:

Apr,08-2016 11:15:46

Kenya's police IG Joseph Boinnet has ordered the immediate arrest of Chase Bank ex-bosses and several NBK officials, amid fears the banking sector is collapsing.

Those to be arrested over Chase Bank's woes are former chairman Zuffrullah Khan and ex-CEO Duncan Kabui, who resigned.

From National Bank are Chris Kisire (chief finance officer) and Munir Mohammed (managing mirector).

Others are Boniface Biko (executive director), George Jaba (chief credit officer), Mohammed Abdalla (ICT director) and Wycliffe Kivunira (acting CFO).

Boinnet said in a statement on Friday that the individuals have the option of presenting themselves to the DCI headquarters along Kiambu road before 3.30pm today.

Chase Bank was on Thursday put under the management of the Kenya Deposit Insurance Corporation for 12 months.

Central Bank Governor Patrick Njoroge said the bank was unable to meet its financial obligations.

Njoroge explained: "CBK appoints a receiver if, among others, an unsafe or unsound condition to transact, a bank has substantially insufficient capital or if there is a violation of any law or regulation."

Central Bank took over Imperial Bank in October 2015 and handed its management over to the KDIC over "unsafe or unsound business conditions".

Dubai Bank is under receivership following its take-over on August 14.

President Uhuru Kenyatta earlier praised Njoroge for cleaning up the sector, which he said is not about to collapse.

Source:

The Star