Kenya police chief orders Chase bankers' arrest

Image source, Reuters
Image caption,
All 62 branches of Chase Bank were shut on Thursday after it went into receivership

Kenya's top policeman Joseph Boinnet has ordered the arrest of eight bankers in the wake of Chase Bank going into receivership.

He said the order followed allegations of unethical conduct. The bankers have not commented.

Two are from Chase Bank and six from the state-owned National Bank, which recently recorded unexpected losses.

Three Kenyan banks have gone into receivership recently, highlighting concerns with the banking sector.

Central Bank of Kenya (CBK) Governor Patrick Njoroge ordered Chase Bank to shut its doors on Thursday after "inaccurate" rumours on social media led to a run on the bank.

In a statement, the CBK said it would appoint a team to run the bank.

Wanted executives

National Bank

  • Munir Mohammed -managing director
  • Boniface Biko - executive director
  • George Jaba - chief credit officer
  • Mohammed Abdalla - ICT director
  • Wycliff Kivunira - chief finance officer
  • Chris Kisire - chief finance officer

Chase Bank

  • Zuffrullah Khan - chairman
  • Duncan Kabui - group managing director

Chase had recently released two conflicting financial statements, the BBC's Ferdinand Omondi in the capital, Nairobi, says.

A subsequent audit showed it had hidden loans to its directors, he adds.

National Bank has also run into problems with its accounts, recording a loss of $13m (£9m).

The central bank governor has tried to reassure Kenyans that the country's banking system is stable, but he has criticised some poor lending practices and mismanagement.

The police chief also warned Kenyans against spreading malicious rumours on social media and the police have arrested one man for "peddling falsehoods" about Chase Bank.