List of Defunct banks of Kenya. Defunct, in a business context, refers to the condition of a company, whether publicly traded or private, that has gone bankrupt and has ceased to exist. Typically, “defunct” refers to something that is no longer existing, functioning, or in use. It may be used to describe laws and regulations, businesses, organizations, currencies, brands, or practices.
According to the Securities and Exchange Commission (SEC), the shares of a defunct company may continue to trade until the company has the shares deregistered or until the stock’s registration has been revoked.
Companies may become defunct for a variety of reasons. For example, bankruptcy may lead a company to shut down operations. Illegal activity or fraud may also cause a company to become defunct, as customers abandon it and its business prospects erode.
Companies may also become defunct as a result of merger or acquisition activity, in which their operations, personnel, brands, and trademarks are rolled into the acquiring company.
Here is a List of Defunct banks of Kenya
Chase Bank Kenya Limited (CBK), commonly referred to as Chase Bank, was a commercial bank in Kenya, licensed by the Central Bank of Kenya, the central bank and national banking regulator.
Chase Bank was a large financial services provider in Kenya, with an estimated asset valuation of approximately US$1.428 billion (KES:142 billion), as of December 2015. At that time, shareholders’ equity was valued at US$119.7 million (KES:11.9 billion).
In April 2018, the central bank announced that State Bank of Mauritius would be acquiring certain assets and matched liabilities from Chase Bank’s. This deal included 75% of deposits, bank staff and branches and merging them with the operations of its Kenyan subsidiary, SBM Kenya. The remaining assets and liabilities were then transferred to Kenya Deposit Insurance Corporation for liquidation.
Commercial Bank of Africa (CBA) was a financial services provider headquartered in Nairobi, Kenya, the largest economy in the East African Community. CBA was licensed by the Central Bank of Kenya, the central bank and national banking regulator.
As of December 2015, the bank was one of the largest commercial banks in Kenya with assets of approximately US$2.166 billion (KES:215.6 billion), with shareholders’ equity of approximately US$217.83 million (KES:21.68 billion). It was the largest privately owned commercial bank in Kenya.
The bank was founded in 1962 in Dar es Salaam, Tanzania. Soon, branches were opened in Nairobi & Mombasa, Kenya and in Kampala, Uganda. When Tanzania nationalised private banks in 1967, the bank moved its headquarters to Nairobi. Following political changes in Uganda in 1971, the bank sold its assets in that country.
At the beginning, CBA was owned by a consortium of financial institutions known as Société Financière pour les Pays d’Outre-Mer (SFOM), based in Switzerland. Original members of the consortium included Banque Nationale de Paris, Bank Bruxelles Lambert, Commerzbank, and Bank of America. In 1980, Bank of America acquired 84% shareholding, effectively buying out all the other SFOM partners. Sixteen per cent shareholding in CBA remained in the hands of Kenyan investors. During the 1980s Bank of America divested from the bank, putting 100% shareholding in CBA in the hands of Kenyan nationals
In December 2018, Commercial Bank of Africa Group (CBA Group) announced that it would be merging with NIC Group creating the Kenya’s third-biggest bank. The Transaction was approved by the Kenyan regulators and shareholders in April 2019. On 27 September 2019, the Central Bank of Kenya approved the merger, effective 1 October 2019. Through the merger, the combined group, NCBA Group, was to consolidate their banking business. This led to the transfer of business to one entity renamed NCBA Bank Kenya Limited.
Dubai Bank Kenya (DBK), whose complete name is Dubai Bank Kenya Limited, but is often referred to as Dubai Bank, was a commercial bank in Kenya, the largest economy in the East African Community. It was licensed by the Central Bank of Kenya, the central bank and national banking regulator. The institution is not affiliated with Dubai Bank of United Arab Emirates or with that bank’s parent company, Dubai Banking Group.
The bank was established in 1982, originally as a branch of Bank of Oman. The assets and liabilities of the bank were subsequently acquired by Mashreq Bank Plc. In 2000, those assets and liabilities were acquired by the present shareholders, who rebranded the institution to Dubai Bank Kenya Limited.
On August 14, 2015, Dubai Bank was 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. The bank had been experiencing liquidity and capital deficiencies and breaching its daily cash reserve ratio. These factors raised concerns on whether the bank would be able to meet its financial obligations. KDIC’s report to the CBK on August 24, 2015 showed that there was no way to save the troubled bank and recommended that the bank be liquidated
The Euro Bank Scandal is a scandal that in February 2003, caused a political storm in Kenya after the collapse of Nairobi Based Euro Bank. This resulted in a loss of 1.4bn Kenyan shillings (£11.6m; $18m) which state organisations had deposited in the Bank.
The National Social Security Fund lost 256m shillings (£2.1m; $3.3m), the Kenyatta National Hospital 421m shillings with the biggest casualty being the National Hospital Insurance Fund, which lost 479m shillings in the collapse. Other state losses incurred were from Kenya Post Office Savings Bank Sh65 million, Kenya Tourist Development Corporation (KTDC) Sh60 million, Kenya Pipeline Company Sh55 million and Kenya Sugar Board Sh55 million.
The bank’s collapse with pensions savings for thousands of workers, resulted in the resignation of Nahashon Nyagah the Governor of the Central Bank of Kenya for failing to prevent the Also forced to resign was John Munge the Kenya Revenue Authority (KRA) Commissioner-General who was a director of Euro Bank, and had previously worked at another bank that collapsed.
Giro Commercial Bank
Giro Commercial Bank, whose full name was Giro Commercial Bank Limited, was a commercial bank in Kenya it was acquired and absorbed by I&M Holdings in 2017. It was licensed by the Central Bank of Kenya, the central bank and national banking regulator.
As of December 2013, the total asset base of Giro Commercial Bank was valued at approximately US$157.67 million (KES:13.623 billion), with shareholders’ equity of approximately US$24.15 million (KES:2.086 billion). Then, the bank held US$132.6 million (KES:11.457 billion), in customer deposits. At that time, the bank was ranked number 29 out of 43 licensed banks in Kenya
Imperial Bank Limited
Imperial Bank Limited commonly known as Imperial Bank, is a commercial bank in Kenya, the largest economy in the East African Community. It is one of the forty-three commercial banks licensed by the Central Bank of Kenya, the central bank and national banking regulator.
On 13 October 2015, the Central Bank of Kenya placed Imperial Bank under the management and control of the state’s Kenya Deposit Insurance Corporation because of what the Central Bank termed as “unsafe and unsound business conditions” at the Bank. Separately, sources said an internal fraud scheme had occasioned the move.
The Central Bank of Kenya had hoped that owners of Imperial Bank would inject cash into the institution but has recently lamented that the shareholders had failed to make good on their promise.
Depositors of the troubled bank can now make their claims at any Central Bank of Kenya or Diamond Trust Bank Group branch and such claims will take three days to confirm their details before they are paid.
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