The rebound is running out of steam too early ahead of the 38.2% fibo retracement at 206.10 on FTSE KE NSE15. At least the rebound needs to test the 50% fibo retracement level at 211.75 to stem off the selling pressure. Otherwise the next drop will slice through the low at 187.79 with ease! If that happens,4300 support will breakdown easily on NSE20.

The Central Bank of Kenya(CBK)has today, Friday 14th August 2015,appointed the Kenya Deposit Insurance Corporation (KDIC) as a receiver for Dubai Bank Kenya Limited for a period of twelve months, pursuant to the provisions of Sections 43(1), 43(2) and 53(1) of the Kenya Deposit Insurance Act, 2012.

The appointment of KDIC as a receiver for Dubai Bank Kenya Limited has been carried out in the interest of its depositors, creditors and members of the public.

Dubai Bank has been experiencing serious liquidity and capital deficiencies which have raised the CBK’s concerns that it will most likely not be able to meet its financial obligations as and when they fall due.

One of the CBK’s primary role as a regulator is to foster the liquidity, solvency and proper functioning of a stable market-based financial system. CBK has closely monitored Dubai Bank’s daily cash reserve ratio from 14th July 2015 when the bank began breaching its daily cash reserve ratio requirements.

Owing to the consistently deteriorating cash reserve ratio position of Dubai Bank and its failure to honour financial obligations, including Ksh.48.18 million due to Bank of Africa Kenya Limited, the CBK is of the considered opinion that the bank will most likely fail to meet its financial obligations in the normal course of business.