Big Chase Bank depositors set for meeting

Chase Bank’s large depositors are set to meet to discuss the way forward in accessing their funds.

In a notice issued by their lawyer KN Associates, the meeting will bring together depositors who had $1 million or Sh101.2 million and above in deposits at the bank.

This comes after subsequent reopening of the bank on April 27 under the management of the KCB Group, limiting account holders to only Sh1 million of their funds held at the bank.

“Large depositors interested in attending the proposed meeting are requested to contact the Managing Partner, KN Associates LLP, Advocates through the email address by September 30, 2016,’ the firm said in the notice.

Though the bank was partially reopened under the management of the Kenya Deposit Insurance Corporation (KDIC) and KCB, withdrawals are still capped at a million shillings.

The cap has meant that only 167,290 account holders of total depositors have full access to their savings.

The law firm said that there would be no charges for the meeting, but depositors will be required to show proof of deposit before admission.

Among the notable large depositors include the Kenya Tea Development Agency (KTDA) which had Sh1.9 billion in fixed deposits at the bank.

The Kenya Ports Authority (KPA) has also been unable to access close to Sh3 billion deposited at the bank.

In its recent annual report, Shelter Afrique disclosed that it also held deposits with the bank amounting to $4,120,287 or Sh412 million. The pan African housing lender said it had set aside Sh80 million as a provision should it not be able to recover its funds in full.

By the end of June 2015, Chase Bank had had fixed deposits valued at Sh56.6 billion an indicator of its appeal to high net-worth individuals and companies.

Central Bank of Kenya Governor Dr Patrick Njoroge has in the past said that Chase Bank represents an attractive bank with 27,000 customers, largely SME businesses.

Further disclosures by the banking regulator showed that Chase also banked 341 non-governmental organizations and 147 savings and credit cooperative societies.

The United Nations Sacco had Sh800 million at the bank under fixed deposits while the African Trade Insurance Agency had $2 million.