Detectives from Banking Fraud Unit on Tuesday night arrested former Chase Bank chairman Mohamed Zafrullah Khan.
He is among seven senior bank managers whom the Director of Public Prosecutions directed should be prosecuted over collapse of the bank.
He spent the night in police custody and is Wednesday expected to answer to charges of money laundering and theft of money. Attempts by his lawyer Cecil Miller to have him released on cash bail failed.
Khan is now expected to be presented in court today to face fraud charges related to the collapse of Chase.
Chase B was placed under receivership for 12 months after experiencing liquidity issues that led to a loss of Sh. 686 million for the financial year 2015.
More to follow…