In the wake of the collapse of Chase Bank, it is worth retracing Kenya’s banking sector’s “rich” history of having banking institutions go bust.
The First Wave (before passing of 1989 Banking Act); 1984-1989, Post-Independence; mainly family/community owned banks:
2.Jimba Credit Cooperation
4.Estate Building Society
7.Kenya Saving and Mortgages
8.Home Saving and Mortgages
9.Citizen Building Society
The Second Wave; 1993-1995: 19 banks collapsed, several of which had been wrapped up in the Goldenberg Scandal.
The Third Wave,1998
13.City Finance Bank
2007 – 2015, under former Central Bank of Kenya (CBK) Governor Prof Njuguna Ndungu
16.Kenya Finance Corporation
*None of the stated banks was put under liquidation.
June 2015 to present, under new Central Bank of Kenya Governor Patrick Ngugi Njoroge
Customer Deposits-Sh1.7 billion
•August 14, 2015; placed under statutory management by the Central Bank of Kenya for a period of one year with Kenya Deposit Insurance Corporation (KDIC) as the receiver manager.
•24th August 2015, CBK appoints KDIC as liquidator of Dubai Bank Kenya.
Customer Deposits-Ksh58 billion
•13 October 2015; placed by the Central Bank of Kenya under management and control of the state’s Kenya Deposit Insurance Corporation