Chase Bank acquired by the State Bank of Mauritius

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In what is likely to be good news to depositors who have had their funds held at Chase Bank since 2016. The Central Bank of Kenya (CBK) and the Kenya Deposit Insurance Corporation (KDIC) yesterday announced that they have reached an agreement with the State Bank of Mauritius (SBM) Kenya Limited.

Under the agreement, there will be a transfer of 75% of the value of the deposits currently held at Chase Bank. There will also be a transfer of a majority of the staff and branches. The remaining 25% of the deposits will remain in Chase Bank.

The 75 per cent of the customer funds that will be transferred from Chase Bank will be appropriated as follows; 25 percent of the transferred amount will be held in a current account with unrestricted access to customers and without interest being paid on it, a further 25 percent will be hold in a savings account  at an interest rate of 6.65 percent per annum also with unrestricted access, the remaining 25 percent will be held in a fixed term deposit at an interest rate of 6.65 percent per annum. These deposits will mature on the first (2019), second (2020) and third (2021) anniversary of the transfer.

Chase Bank customers whose funds were not under moratorium, will also be transferred and will continue to enjoy access to their funds. However, the dates when these funds will be made available is yet to be announced.

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