May 23, 2018 Last Updated 11:11 AM, May 23, 2018

Mauritian bank SBM to put $60 million into Kenya’s Chase Bank

Money globeABNABN - Mauritian banking group SBM Holdings is to inject an additional US$60 million of capital into Kenya’s Chase Bank, which has been in receivership for two years.

The Central Bank of Kenya has been seeking a strategic investor for the moribund institution since April 2016 after failing to meet its financial obligations.

SBM has already injected $26 million into Chase after signing an agreement to take over some of its assets. Under the deal, Chase will be renamed SBM Bank Kenya Ltd.

Last week the central bank announced that it and state-run Kenya Deposit Insurance Corporation had signed a deal with SBM Bank Kenya Limited allowing SBM to take 75% of certain assets and deposits of Chase Bank, as first agreed in January.

More recently, SBM Holdings chairman Kee Chong Li Kwong Wing told a news conference the deposits SBM is taking on will amount to around $600 million.

“This marks also the positive contribution of SBM to regional financial development as Mauritius and Kenya establish themselves as strategic hubs in the Asia-Africa corridor,” said Li.

The agreement is subject to approval from regulators in Mauritius and Kenya, he added.

@ABNetworkOnline

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