Corporate News
Chase Bank depositors outside a Nairobi branch after the lender was put
under receivership by the Central Bank of Kenya on April 7, 2016. PHOTO |
FILE
By DAVID HERBLING, hdavid@ke.nationmedia.com
In Summary
Chase Bank’s foreign shareholders have turned to their respective embassies in Nairobi to help resolve their concerns on KCB’s ‘conflicted role’ as receiver manager and presumed buyer of a significant stake in the collapsed lender.
German investment firm DEG, French private equity fund
Amethis Finance and Swiss venture capital firm responsAbility have
expressed their concerns through a letter to the Central Bank of Kenya;
copied to the German, France, Dutch and Swiss embassies.
The foreign shareholders, who control 20.9 per cent
of Chase Bank, argue that KCB has kept them in the dark with no updates
on ongoing efforts to fully re-open the SME-focused lender.
Through law firm Anjarwalla & Khanna, the
shareholders reckon that Kenya has signed investment deals with their
countries that protect their business interests in Nairobi.
“The shareholders of the bank include international
investors, each of whom have various rights under bilateral investment
treaties (BITs) entered into by their host nations with Kenya (these
include, France, Germany, the Netherlands and Switzerland) and under
which the Kenyan government guarantees investors “fair and equitable
treatment” said the foreign shareholders.
KCB has called a press conference on Thursday “to
provide a status update on the (Chase) bank’s journey to recovery 90
days down the line” as per a media invite sent on Wednesday.
Their concerns include KCB’s commitment to buy the
lender; and a lack of resumption of full banking services such as loan
facilities, access to deposits exceeding Sh1 million, sacking of
employees, and impairing of alleged toxic and irrecoverable loans.
“Notwithstanding a clear conflict of interest in
the dual role…the shareholders would fully support all stakeholders in
the firm belief that both the CBK and KCB would adhere to the highest
standards of transparency, fair play and accountability on the process
going forward,” reads a letter by Chase Bank owners dated July 6, 2016
and addressed to KCB chief executive Joshua Oigara.
“It has, therefore, been of great concern that no
formal discussion with shareholders has taken place or that no further
details as stipulated in CBK’s press release of April 20, 2016 have been
released or communicated to shareholders or to the general public,”
says the letter signed by Dutch investor Carlo Van Wageningen on behalf
of the other shareholders.
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