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KCB to decide whether to buy Chase Bank within a y...

KCB to decide whether to buy Chase Bank within a year

A month into managing Chase Bank, KCB is confident that the bank will be more stable, guaranteeing customers and investors their investments. Joshua Oigara, the KCB Chief Executive confirmed that they have been receiving positive reviews from customers who can now access all their financial needs at the bank.

KCB intends to use the next one year to check the banks loan book, revenues, deposits and investments before making the final decision.

We have one year to decide. We currently have been managing it for about three weeks but we are confident that we will make a decision before one year lapses, he said.

Mr. Oigara admitted that the sad phenomena about Imperial Bank and Chase Bank going under is that they had the best Return on Investments (ROI) for its customers. It is for this reason that they thought it wise to step in and return confidence to the depositors and Kenyans at large.

The collapse of the two banks sent shock waves in the country, with many feeling that their is a banking crisis. But Oigara and CBK Governor. Dr. Patrick Njoroge have consistently affirmed that the banking sector is strong. It is the position also taken by Kenya Bankers Association CEO Habil Olaka.

Before KCB makes the decision, they intend on hiring a reputable international company to review Chase Bank’s operations to better inform the final decision.

We do not have any timelines yet on when we will engage the international company but that will not be very long, he added.

The bank with the largest asset base beat nine other institutions including HF Group to be granted Chase Bank as the receiver managers. In an earlier interview with the East African, Oigara affirmed KCB’s intention to retain Chase Bank’s identity, employees and customer base because they have built their brand and they have no intention of changing this focus.

KCB did not necessarily inject capital to Chase Bank. It said that the bank has various assets which could be converted to liquidity within 90 days should they need more liquidity to support its financial obligations.

It was chosen because CBK wanted an institution that will fast breed confidence to shareholders, customers and the financial market.


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