(Last Updated On: April 9, 2016)
Its news everywhere that Chase Bank Kenya has been put under receivership after directors took billions of shillings loans which they would never pay back. Auditors gave a qualified opinion to the financial reports meaning they didn’t get all the information they needed, news hit social media and people ran for their money. The bank didn’t have enough cash in the vault to give everybody so they had to close it for a while till shareholders add more money.
Many Kenyans and small businesses had their money in Chase Bank and cannot access it so businesses have stalled. Well, they were not the only ones. Big companies had hundreds of millions deposited in the bank and we all know one cannot move such kind of money to another bank in an instant. Here are some of the big companies
Sportpesa is the biggest online sports betting company with billions of deposits across its various bank accounts. According to CEO Ronald Karauri the company had over Ksh500 million locked up but didn’t give the exact figures. This hasn’t affected their operations since they have accounts in other big banks.
2. UN Sacco
Saccos are there for people to save their money, get cheaper loans and a share of the saccos profits. UN Sacco invested Ksh800 million in a fixed deposit account whereby it would be paid interest on the deposits by Chase Bank.
3. Strathmore Univesity
Strathmore is one of the biggest private high end universities in Kenya plus it has a Chase Bank branch inside the campus where students would deposit fees easily. Their account with that bank was a fees collection account which could easily run into millions. It has other accounts with Standard Chartered Bank and Co-op Bank which are alternatives. The university gave a notice to students not to deposit any funds into their Chase Bank collection account until further notice.
4. Law Society Of Kenya
LSK had two accounts held at Chase Bank and had chosen not to withdraw any money after the warning bells started to sound, a decision they highly regret. The amounts held at the bank are estimated to be over Ksh50 million, which consisted of both investment and client accounts. According to LSK President Isaac Okero, they had earlier called Chase Bank management and they were convinced everything was sound. A special meeting had even been convened to withdraw cash from the bank but they stopped it after contacting the management.
Chase Bank has over 55,000 depositors with over Ksh96 billion in the bank. These include Chamas, Saccos, SMEs, salary accounts, saving accounts etc. There also 1400 direct employees who stand to lose their jobs.