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Revealed: New Chase Bank Insider Dealing Scam That Should Worry Customers



Chase Bank was put  under receivership in April sending panic amongst many clients who had cash locked in the bank. Customers were taken through endless financial and mental torture in the period that the bank was closed down by the Central Bank of Kenya .

As it would later come clear , insider dealings by rogue bank executives including unsecured loans in hundreds of millions led to the untimely collapse of a then fast rising bank in Kenya. The bank directors like in most of corrupt cases were drugged through the judicial system in an orchestrated pattern but nothing heavy reigned on them . As I type this, many of them are enjoying the loot from the corporate thievery.

Kenya Commercial Bank came as a saviour to the Chase Bank customers by taking over its operation under receivership . Numerous investors had expressed interest in buying the floppy bank but things have changedovertime .

Kenya’s Central Bank is considering alternatives to recapitalise the troubled Chase Bank after potential buyers opted out of investing in the mid-sized lender that is currently under receivership.

The Central Bank confirmed that some potential investors dropped their bids, but they remained optimistic that the proposed capital injection into Chase Bank would be completed during the first three months of 2017.

The banking regulator said it was considering converting some deposits and loans into equity and giving the existing shareholders a chance to buy into the bank.

While Chase Bank troubles don’t seem to hit any end , Kenya Insights has unearthed yet another fraud scheme within the bank that should not only worry the customers but potential investors as they’ll risk their money taking over a bank marred with scandals and deflated consumer confidence which is an hazardous combination to such an institutions existence.

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In our investigations and we will illustrate with a particular yet common case, ChaseBank agents are working with auctioneers to defraud unsuspecting and naive customers who took loans from them. The scheme is to feign loan default in a systematic plot that even those customers who pay their loans in time and up having their items repossessed . The scheme is meant to benefit the bank agents and the auctioneer companies through damages charges which then they share the loot.

In this particular case studied by our senior investigative writer , a Chase Bank client had a hire purchase facility and which is being liquidated in monthly instalments.

On the 24/11/2016, the clients tractor was forcefully seized by Igare Auctioneers on ChaseBank’s  instructions. The said seizure was illegal and wrongful for the following reasons.

(a) The client on the 16/10/2016 instructed ECO Bank to pay through RTGS the sum of Kshs.250,000/= to the client’s account (Sakami Ranches Ltd). That money was to clear the October instalment.

Despite the money having been received by Chase bank,they credited the same to a different account belonging to the same customer, this is a deliberate mistake , contrary to the RTGS instruction. The bank never advised the client  that it had credited her account with the said payment. Possibly that was done deliberately, with a view to create work for M/S Igare Auctioneers, and load his charges plus the bank further charges and penalties to the client’s account!

Even as the client paid the November instalment, it had no idea that as per Chase Bank’s records, the October instalment had not been paid. The sum of Kshs.11,661.70 got loaded into the client’s account, over the non payment of the October instalment.

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(b) A letter dated 2/11/2016 addressed to the client’s directors by Chase  bank, was possibly never posted. The letter was advising the  client that the sum of Kshs.482,643.20 was due.The bank mark you have the clients email address, and it could have been so easy to reach her. Even on telephone. She only came to learn of that letter on 24/11/2016. Once again, one can only read an intention to create work for Igare Auctioneers and further penalties.


(c) It was on the 24/11/2016 when the client’s director was at Chase bank, that she was called and informed of auctioneers in the farm. Upon enquiring why that was being done, she was informed of arrears of Kshs.282.700/=. She was now given a copy of the letter of 2/11/2016. She also learnt that the sum of Kshs.250,000/= paid from ECO bank, was never credited to the correct account.

(d) She immediately  paid the sum of Kshs.282,700/= immediately.

Upon getting to the farm, she availed the payment slip to the auctioneers, but who still proceeded to seize the tractor. Possibly with an aim of increasing costs and penalties!

As you can read from the pattern of events , everything seem to be planned to the letter and nothing however legal cab stop it. This is not an isolated case as the writer of this piece managed to talk to three more clients having the same set of problem.

It’s stressful that rogue Chase Bank directors are taking advantage and baiting naive customers to make few bucks illegally from such dealings . You can do the math how many millions on daily are made from the illegal repossession of items and the mental beatings several clients are forced to undergo.

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It’s such selfish interests and greed that succumbed Chase Bank despite it’s promising future . The bank has managed to record shockingly steady deposits after being put inreceivership and this can only be attributed to consumer confidence . Customers can’t afford to be bitten twice should they discover that the same insider fraud scheme that drowned their savings are back in play .

Bank can’t survive without customers taking loans as they feed on the interests , who then will take a loan from a bsbk that’s baiting them for disaster .Central Bank governor Njoroge must spring into action before the cartel maul thelittle peace of meat that’s keeping the ailing bank alive . Kenya Insights is committed to exposing all mannerisms of frauds as this of Chase Bank that in long run ends up costly to the consumers .

This is the time for Chase Bank to regain and maintain customer confidence age not baiting and fleecing from the same wounded customers. KCB as the custodian of the malnutritioned bank must strike a whip on such rogue executives not working to restore consumer confidence in the bank . As things stand, consumers should treat their transactions with the bank with absolute precautions as the predators seemingly not out of the counters. For a bank that operates under relationship theme, the bank is in a troubled relationship with it’s trusting customers , what a waste!

Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news TIPS, story angles, human interest stories, drop us an email on [email protected] or via Telegram

Kenya West is a trained investigative independent journalist and a socio-political commentator on matters Kenya and Africa. Do you have a story, Scandal you want me to write on? Send me tips to [[email protected]]


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