Business

Chase Bank acquisition on its last lap

Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC) have disclosed that Chase Bank’s acquisition process by State Bank of Mauritius is on the last lap.

The two institutions yesterday revealed that what now remains is ‘just a logistical interfacing’ after the approval of the acquisition of Chase Bank by State Bank of Mauritius.

Speaking yesterday, CBK Governor Patrick Njoroge, said 75 per cent of depositors of Chase Bank will now be given the chance to start interfacing process into the SBM.

They will also be given the opportunity to flip their accounts into SBM and the process is likely to start in few weeks.

The Governor said SBM Holdings will acquire certain assets and liabilities which include the transfer of 75 per cent of the value of deposits currently under moratorium and the transfer of staff and branches of Chase Bank Kenya.

He also revealed that non-moratorium depositors will continue to have unrestricted access to a third of their funds. “A total of 18.5 per cent of the 75 per cent depositors have current accounts, 18.5 per cent have savings accounts – which they will attract 7 per cent interest,” he said.

Dr Njoroge said the acquisition will allow the bank bring its experience and expertise from Mauritius and other markets, to further enhance competitiveness and the resilience to the Kenyan banking sector.

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