Kenyan lender KCB Group has agreed to acquire a majority stake in local rival Chase Bank that was placed under receivership after a run on deposits, aggravated by reports of mismanagement.
"KCB will undertake a detailed due diligence review of CBL. This will inform decisions relating to KCB’s interest in a majority stake. KCB, one of the country’s biggest banks by assets, will provide a management team for Chase’s reopening and, along with the central bank, will guarantee its liquidity," the central bank of Kenya said in a statement.
All branches of Chase Bank will reopen on 27 April 2016, with customers getting access to online and mobile-banking services.
Initially, banking services at the bank’s branches may be limited. Customers can initially access deposits of up to KES1m.
"On this basis, 167,290 accounts (equivalent to 97 percent of accounts or 6 percent of total deposits) will have their funds available in full. Any new deposits will thereafter be immediately available," the central bank stated.
The moratorium on payments to creditors and lenders will however, stay intact.