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List of Banks Under Receivership in Kenya

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The Central Bank of Kenya (CBK) lists banks paced under receivership and appoints the  Kenya Deposit Insurance Corporation (KDIC) as the receiver manager for a period of twelve months, pursuant to the provisions of Sections  43 (1), 43(2) and (53)1 of the Kenya Deposit Insurance Act, 2012.

Here is the List of Banks placed Under Receivership in Kenya by the Central Bank of Kenya (CBK) in a period of less than 2 years:


  • Dubai Bank

  • Imperial Bank Ltd

  • Chase Bank

  1. Dubai Bank

The Central Bank of Kenya (CBK) in August 7, 2015 placed Dubai Bank Kenya under receivership following what it termed as “serious liquidity challenges and capital deficiencies.”

The regulator  in the meantime appointed Kenya Deposit Insurance Corporation (KDIC) as a receiver for Dubai Bank Kenya for a period of 12 months.

The action has been taken with the aim of protecting depositors, creditors and members of the public.

According to “Section 43(2) of the Kenya Deposit Insurance Act, 2012 requires CBK to appoint the KDIC as a receiver of a bank, if, among others, an unsafe or unsound condition to transact exists, a bank is likely to fail to meet its financial obligations, a bank has substantially insufficient capital or if there is a violation of any law or regulation,” the regulator explained.

The receiver is now expected to release information about the resolution and the way forward of Dubai Bank Kenya in due course.

2.  Imperial Bank Ltd

Imperial Bank Limited  joind the list of Banks placed under receivership in  Kenya, by the Central Bank of Kenya (CBK) on Oct 13, 2015 .

In a statement, CBK announced the appointment of Kenya Deposit Insurance Corporation (KDIC) to assume management and control of the bank for a period of 12 months.

“CBK has become aware of unsafe or unsound business conditions at Imperial Bank Limited,” read the statement.

The move is in line with Section 43(2) of the Kenya Deposit Insurance Act that requires CBK to appoint KDIC as a receiver of a bank if, among others, unsafe or unsound business conditions to transact business exist.

Customers seeking information about Imperial Bank Limited can get in touch with them on the telephone number 0770887992 or send an email kdiccommunications@depositinsurance.go.ke.

KDIC’s overall objective is to provide a deposit insurance scheme for depositors of member institutions licensed by CBK, to receive, liquidate and wind up any institution in respect of which it is appointed receiver or liquidator in accordance with the law.

KDIC has therefore assumed control of the assets, liabilities, business and affairs of the bank.

Due to the receivership, the bank’s normal operations are suspended except for the collection of loan re-payments or any other payments into the bank.

Founded in 1992, Imperial Bank was ranked seventeenth on total customer deposits at 1.8 percent of total industry.

It was also ranked position seventeen in the country in terms of core capital at Sh6.5billion at the end of the 2014 fiscal year.

Additionally, Imperial Bank’s gross advances gave it the seventh slot with 1.6 percent of the total industry.

The bank’s receivership follows its launch of a Sh2billion corporate bond offer in August which is due to be listed on the Nairobi Securities Exchange later this month on the thirtieth.

3. Chase Bank

Chase bank is the latest bank to to be placed under receivership by The Central Bank of Kenya (CBK). The Bank was put under statutory management for a year 0n 7th April, 2016 due to what the regulator termed as unsafe financial conditions.

The regulator said  it had taken the drastic decision saying Chase Bank had experienced “liquidity difficulties.”

“The Central Bank of Kenya has today Thursday appointed Kenya Deposit Insurance Corporation (KDIC) as the receiver manager for Chase Bank Limited for a period of twelve months, pursuant to the provisions of Sections  43 (1), 43(2) and (53)1 of the Kenya Deposit Insurance Act, 2012,” said CBK in a statement.

It explained: “Chase Bank Limited experienced liquidity difficulties following inaccurate social media reports and the stepping aside of two its directors. Consequently it was not able to meet its financial obligations on April 6, 2016.”

KDIC will assume the management, control and conduct of the affairs and business of the institution to the exclusion of its board of its directors and advise CBK of an appropriate resolution strategy as soon as it practicable and not later than twelve months, CBK said in the statement.

Chase Bank chairman Mr Zafrullah Khan and group managing director Mr Duncan Kabui stepped aside following concerns over the credibility of the bank’s financial statements.

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1 Comment

  1. Linwood Shirey

    July 30, 2016 at 10:45 am

    Thanks!

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