NAIROBI: Kenya’s central bank is evaluating around five indications of interest about investing in Chase Bank, a mid-sized lender which was put into receivership last week, the governor said.
Central Bank of Kenya Gov. Patrick Njoroge also said that banks drawing on a new facility to provide liquidity to those in need would face closer scrutiny, signaling the tighter supervision he has flagged since his appointment last year.
Chase Bank was the third medium or small lender to be closed in Kenya in nine months, rattling investors in East Africa’s biggest economy where the level of gross non-performing loans reported by banks rose sharply last year.
Njoroge has sought to soothe concerns about the sector. “Is this a body blow to the financial system? The answer is no,” he told a news conference where he offered an update on the case of privately owned Chase Bank.
He said the central bank was assessing “upwards of five” indications of interest in Chase, which was closed for business on April 7 after auditors flagged concerns about loans worth 16.8 billion shillings ($166 million), sparking a run on deposits.
The governor, who has said he wanted to reopen the bank swiftly, said foreign and local parties had shown interest, but did not say if they wanted to take over the bank or buy a stake.
Kenya central bank evaluates offers for closed Chase Bank



