Chase Bank Kenya Ltd (in receivership) (CBLR) will fully be acquired by SBM Holdings Limited, wholly owned subsidiary SBM Bank (Kenya) Ltd, on August 17, 2018.
The process follows the Central Bank of Kenya’s (CBK) approval on June 13, 2018, under section 9 of the Banking Act of Kenya and under the Central Bank Prudential Guidelines.
Subsequent approval was granted by the Cabinet Secretary, National Treasury of Kenya on June 28, 2018.
SBM Kenya will assume 75 percent of the value of deposits under moratorium at CBLR, all non-moratorium deposits at CBLR, and will take on the majority of CBLR branches and employees.
As per the terms of the transaction, 50% of the non-moratorium deposits will be available upon completion of the transaction through current and savings accounts.
The remaining 50% will be placed in interest earning term deposits to be accessed equally over a period of three years.
“This landmark transaction will enable the SBM Group to grow inorganically, taking SBM Kenya from a tier 3 bank to a strong tier 2 bank within a year of its creation”, declared SBM Group Chairman, M. Kee Chong LI KWONG WING, adding that “it is also in line with the Group’s internationalization strategy to have a greater regional presence, taking its footprint beyond Mauritius into the Asia Africa corridor.”
It is to be noted that Chase Bank is a commercial bank headquartered in Nairobi, Kenya, with a network of over 60 branches across the country.
Based on its 2014 annual report, the bank had total assets of over USD 1 billion and employed around 800 staff.
In 2016, CBK placed the bank in receivership when it failed to meet its financial obligations and appointed the Kenya Deposit Insurance Corporation as the receiver manager.