State moves to prevent run on banks

What you need to know:

  • As the bankers were being locked up, National Treasury Cabinet Secretary Henry Rotich and Central Bank of Kenya Governor Patrick Njoroge yesterday assured depositors that the financial system was “fully sound and stable” and urged them not to panic.
  • Speaking after a crisis meeting with bank bosses, they said events that led to the failure of three banks, including Imperial and Dubai, were isolated and not contagious.
  • On Thursday Central Bank placed Chase Bank under receivership after it failed to honour its obligations due to liquidity problems.

An arrest order was issued on Friday for eight top managers of two banks that risked depositors’ money.

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