Beginning next month, Chase Bank customers will access various banking services under a new entity, SBM Bank Kenya Limited.
Depositors will get 50 percent of their funds transferred to SBM Bank Kenya Limited under savings and current accounts when the latter completes acquisition of the once troubled lender.
In a joint statement Kenya Deposit and Insurance Corporation and SMB Holdings say the transaction is now in the final stages which will lead to transfer of among others staff, assets, IT systems and branches to SBM Bank Kenya.
This is expected to take 30 days.
After 2 years under receivership, Chase Bank Kenya Limited will cease to exist as a Kenyan financial player on 17th of August when Mauritius based SBM Holdings Limited, the parent company of SBM Bank Kenya Limited completes transition.
During the transition period KDIC expects SBM Bank to absorb majority of former chase bank employees, agreed carved out assets and liabilities, IT systems, select branches and distribution networks and rebrand all Chase Bank branches and distribution networks to SBM Bank Kenya.
The bank will acquire liabilities which are 75% of deposits under moratorium, 100% non-moratorium deposits and matched assets such as loans, liquid assets, some branches and systems.
However 25% moratorium deposits still with Chase Bank as well as certain loans and deposits subject to court cases and remaining assets awaits KDIC resolution.
SBM Bank will inject additional capital of KES 6 billion into the business, pushing total invest to KES 8.6 billion.
Following the move, depositors will access half of their funds transferred in savings and current accounts of the new entity while the remaining 50% transferred moratorium deposits will be availed equally over the next three years, earning interest as a result.
KCB Bank Kenya which has been the receiver manager will be part of the transition team until the process is concluded.