Chase Bank depositors would be prioritized over creditors in settlement of dues owed by the collapsed lender.
The Kenya Deposit Insurance Corporation, that was last Friday appointed by the Central Bank of Kenya (CBK) to liquidate Chase Bank in Receivership, says depositors would be the first to be paid from the insurance kitty.
“The depositors of Chase Bank Limited in Liquidation become the first beneficiaries to be paid the enhanced deposit amount of a maximum of Kshs 500,000.00,” a statement from KDIC, read in part.
Initially, CBK initiated a process that saw depositors who had up to Kshs 100,000.00 recoup their deposits, from the banking insurance kitty, overseen by KDIC.
This means that those who had more than Kshs 100,000.00 are the targeted group here.
KDIC has been managing 25% of Chase Bank Limited in Receivership’s deposits, assets and liabilities since 2018.
“On August 17, 2018, 75 percent of the value of deposits at CBLIR and 75 percent of the value of assets were carved out and transferred to SBM Bank Kenya Limited (SBM Bank), a subsidiary of SBM Holdings Limited. This followed a transparent Expression of Interest process. The transaction enabled CBLIR depositors to access a significant portion of their frozen deposits,” said KDIC.