Five institutions indicate interest in collapsed Kenyan bank

Five institutions have made their intentions to buy Chase Bank, which recently placed into receivership by the Central Bank of Kenya (CBK) after facing liquidity difficulties.

“We have received upwards of five institutions, both local and foreign, wanting to buy the bank. We are evaluating this interests,” CBK Governor Patrick Njoroge said on Friday.

According to Njoroge, the regulator has moved to quickly revive the bank because its assets could be identified and sold. Shareholders and directors have also shown willingness to quickly resolve the outstanding matters, including completion of registration of collateral documents for the previously unsecured loans.

With Chase Bank unable to meet its financial obligations, CBK had appointed the Kenya Deposit Insurance Corp. as receiver “in the interest of its depositors, creditors and members of the public.”

The lender is the third to be taken over by regulators since Njoroge became CBK governor last June. He had placed Dubai Bank Kenya Ltd. in liquidation in August after it ran out of money, although a court stopped the liquidation on March 20, according to the Nairobi-based Star newspaper. Another lender, Imperial Bank Ltd. was seized by the regulators in October.

Kenya-based Business Daily had last week reported that KCB Group, Centum Investments, I&M, Equity and Commercial Bank of Africa were interested in purchasing the bank.