Financial sector regulators failed to spot trouble at Chase Bank

Chase Bank headquarters at Riverside in Nairobi. PHOTO | ROBERT NGUGI | NATION MEDIA GROUP

What you need to know:

  • Just last year, Chase Bank got the greenlight to raise a Sh10 billion bond, out of which Sh4.8 billion was raised.
  • Imperial Bank too was approved to raise a Sh2 billion bond last August, only for it to collapse two months after.
  • Experts say the extent of rot in the banking industry is huge and that the worst may be yet to come as CBK continues to tighten regulations.

Despite the government’s assurance that the health of the banking industry is intact, questions remain about the extent of manipulation of financial statements in the entire sector and why regulators are failing to smell trouble in time, often acting when it is too late.

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