Patrick Njoroge: Why it was necessary to shut down Chase, Imperial and Dubai banks
NAIROBI, Kenya, Aug 11 – Former Central Bank of Kenya (CBK) Governor Patrick Njoroge has said tough decisions had to be made during his tenure, including the closure of three…
Former Central Bank of Kenya (CBK) Governor Patrick Njoroge revealed the necessity of shutting down three banks during his tenure. In an interview, Njoroge explained that the closures were due to the banks' failures to comply with regulatory requirements. The first bank to be shut down was Dubai Bank Kenya in August 2015, followed by Imperial Bank Kenya in October 2015.
Chase Bank Kenya was the third bank to be closed, which occurred after substantial cash withdrawals following the public disclosure of the bank's unapproved lending to insiders. The closures had a significant impact on the country's banking sector, particularly due to Chase Bank's diverse depositor base. Njoroge emphasized the importance of enforcing the rules and insisted on adherence to regulations.
He acknowledged that the closures ultimately helped restore discipline in the banking sector, leading to a change in the culture of the banks.
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