KCB has announced that it is expecting to pull out of Chase Bank in the next three months.
According to KCB Group CEO Joshua Oigara the future of the bank which was put under receivership in April now lies on the Central Bank of Kenya (CBK) and the Kenya Deposit Insurance Corporation (KDIC).
“Our job at Chase bank is actually complete. The bank is now able to run on its own. There is nothing else for us to do at the bank,” Mr Oigara said. “What remains is an independent business review, which is the assignment to be done by KDIC and CBK.”
He added that over the next two months, KCB staff working in Chase bank will be pulled out. “By end of this month, half of the KCB staff seconded to the bank will be out. KCB will completely pull out by end of September. Chase Bank has been a miracle in the region. KCB appointment period was one year and we have played our role. This had never been tried elsewhere. Some 25 banks closed (in Kenya) and never came back,” said Oigara.
“We have not invested in Chase Bank. We can walk away today saying we have set the bank back into motion,” said Oigara, revealing that KCB was actually being paid a professional consultancy fee through KCB Capital Ltd, an investment bank that it wholly owns.
