True true.
Dr Pato has always said he wants to leave CBK as a world class central bank. If we read in between the lines, this is a journey he has embarked on. There's nothing world class with no strict standards and their enforcement. He has not yet started streamlining the system, he is just but cleaning it to give him a base to start. So all this ndrama is a cleaning exercise being carried out. Some banks have 'dirtified' their books so its dirt that we are seeing as for now na mambo bado.
Next stage will be setting minimum baseline operating standards the modus operandi is set to change. Supervision will be in another level after the cleanup.
Vetting of who runs the banks at both board level and senior management will be at another level.
Corporate governance will be like a daily hymn in the industry.
So fellow wazuans the revolution is real but at the very initial stages.

A law need to be passed in Parliament urgently to criminalise Bank directors borrowing above some ratio. It should also be criminal for them to borrow without security. The jail terms should be high and attract death penalty in case of a magnitude such as the one for chase bank. If we do not do this, then there will be no difference between putting your money in a bank and giving it to Kanyari or arap mashamba for safe keeping.

Okay.... Do you mean a simple easy one just for CBK regulatory? I mean one where the guys should already be in court plus all those members of staff who approved or were in a position to know of that the limit had been exceeded like the Finance Director and CEO.

@timizo, I think you are mixing up the existence of laws and enforcement. We have very many good laws but we are all so many rats unable to bell the cats. Probably this is what @maka is saying..

The problem is impunity (not the Wazuan)

ON CHASE BANK: Well, three of my business friends whom we've recently transacted with using Chase Bank called me yesterday. One is a guy who deals with branding and large scale printing and we had issued his company with a cheque last week which he had already banked with Chase Bank - he told me that 3/4 of his working capital is with that bank including the Cheque I gave him. The other one is a Business Woman based in Meru County who operates an Agrovet. Last week but one she issued us with a cheque from Chase Bank and thanks God we had already banked it and it was cleared - the lady told me that she has over 2 million shillings in her current A/C with Chase Bank. The third one is a distributor of raw materials based in Mombasa who we had issued with a post-dated of quite Some huge amount - he told me that thanks God the Cheque was post-dated because he'd have deposited in his Chase Bank A/C. He also added that his A/C with Chase Bank has over Ksh. 700k. Well, two of these friends follow me here on Facebook and can attest to that fact.

Now, those are just 3 people who have been seriously affected by the recent placement of Chase Bank on Receivership by the Central Bank. They have money that they've saved for decades but right now have nothing to use. It would mean their businesses collapsing or losing a significant no. of customers. 55,000 more people who bank with the same bank are in the same fix. Too bad, too sad.

Close to 1,400 employees employed by this Bank are already smelling joblessness. Thousands of shillings paid to the KRA by this bank from PAYE, Income Taxes etc will be no where to be seen. Many suppliers who trade with Chase Bank will have their contracts automatically terminated, the money they are owed delayed or lost and many bad and worst things.

All this is courtesy of Corruption, greed and selfishness.

I've always advised my friends to be extra keen when dealing with Financial institutions whether for Loans, savings or the likes. I've always insisted that these Mickey Mouse institutions are not reliable no matter the benefits. Those who listen to me are in KCB, Barclays Bank, National Bank, CB and SCB. Those who don't listen are in Chase Bank, KWFT Bank, Family Bank, Giro Bank, Rafiki whatever etc etc - you know these funny funny things.

For the last one month I've Been very keen not to miss any paper with the focus being the Finacial Statements Published by Banks during this period. I always do it every year. As a financial specialist, well, the accounts look appealing and lovable. In as much as we rely on audited statements, today's auditors are not trustworthy. Of course auditors work with information provided to them but some things are too pronouced to assume. All in all, my point is this, not even those Accounts can be trusted. Just trade carefully.

Personally, I rarely do large savings with banks. I've learnt to reinvest a significant amount of my savings in National Goverment tenders. They stay with my money for even 6 months but I don't complain because its better than putting in a fixed deposit account in a Commercial Bank and get things like 4% per annum and after 7 months the bank is placed under Receivership. That is me, but if you care, that's one of the best routes alongside Treasury Bills and Bonds.

My friends, learn to trade with the Government. Consider National Bank, it's significantly owned by NSSF, consider KCB owned by KCB Group where the Govt has over 17% shares, Consider CB owned by GoK. Even if they go under the Govt will obviously intervene substantively. Buy Treasury Bills, Buy Treasury Bonds. Or just put that money in a Safe, its yours.

That post by Cornelius is pure hogwash and reckless. I understand people are spending the better part of today moving money from the likes of BOA consolidated etc to CBA. The thinking being the President bank is more secure....These rumors are causing bank runs and they could be catastrophic.

Cornelius.....stick to your lane, green section

Wafunge hawa watu kama funzo kwa wengine wanaofikiria kuiba

How do people sleep at night peacefully with full knowledge that they have shattered someones business,dreams, family, relationships hardwork etc?