Just a few days after announcing a Sh5billion credit facility from the African Development Bank, Chase Bank chairman Zafrullah Khan and Group Managing Director, Duncan Kabui have resigned with immediate effect allegedly due to an over Ksh 750m loss and Ksh 15billion missing in the banks books.
To replace them, Mrs. Muthoni Kuria has been appointed as the Chair of Chase Bank’s board while Paul Nyaga continues as the CEO.
Mrs. Kuria has served on the Board for over three years. She is a career banker and certified public accountant. She holds an MBA and serves on other boards.
Mr. Paul Njaga continues as the Chief Executive Officer. Mr. Njaga has been the CEO of Chase from December 2014. He is a career banker having worked with BNP Paribas and as Chief Finance Officer at Equity Bank. He is a certified public accountant with an MBA in Finance.
Whether guilty of embezlement or not, Mr. Zafrullah Khan and Mr. Duncan Kabui have stepped aside from the positions of chairman and Group Managing Director respectively.
The board would like to reassure all its customers, partners and the general public that Chase Bank is a strong, sound and transparent institution that has operated in Kenya for the last 20 years.
The shareholders of the bank who count among the world’s leading institutional investors from Germany, France and Switzerland have fully supported the changes, and remain committed to the partnership with the bank.
In 2015, the bank lent excess of Kes 22 billion to small businesses out of a loan book of Kes 103 billion. The bank is ranked 11th in terms of balance sheet size in the Kenyan banking industry with assets valued at Kes 143 billion. Its core capital stands at over Kes 11 billion as at December 31, 2015.
Chase Bank troubles come just days after National Bank bosses were sent packing over alleged mismanagement and months after the Imperial Bank of Kenya was put under receivership for similar troubles.