The Central Bank of Kenya (CBK) has placed Dubai Bank Kenya under a receiver for a year in response to “serious cash-flow problems”. In a statement released this afternoon, CBK said it has appointed the Kenya Deposit Insurance Corporation (KDIC) as a receiver to protect the interest of depositors, creditors and the public.
CBK said Dubai Bank Kenya has been experiencing liquidity and capital issues which raised concerns that it will most likely not be able to meet its financial obligations as and when they fall due.
“CBK has closely monitored Dubai Bank’s daily cash reserve ratio from July 14, 2015 when the bank began breaching its daily cash reserve ratio requirements,” the statement says. “(We have) also been in contact with Dubai Bank to attempt to redress the situation, but there has been no compliance by the bank.”
The non-compliance has to date attracted a penalty of Ksh5.4 million. “Owing to the deteriorating cash reserve ratio position and Dubai Bank’s failure to honour financial obligations, including Ksh48 million due to Bank of Africa Kenya, the CBK is of the opinion that the bank will most likely fail to meet its financial obligations in the normal course of business.”
The bank has been engulfed in drama in recent years, with some of its troubles including a managing director who fled the country to avoid CBK questions on his role in a dodgy deal; a chairman arrested and accused of obtaining his citizenship through fraud; claims it hosted a secret bank account used to loot Ksh1bn from Mumias Sugar Company and court battles with Kwanza Estates and Erdemann Properties, among others.
Align Kenya’s political system with global standards
There is need to ensure that our system is in line with international best practice especially as they relate to...
Kitui County embroiled in models ‘sex scandal’
At least 16 models have dismissed the crowning of four winners at a beauty pageant held last month
Kenya not yet fully a free democracy, new report says
While a full report on the country's performance is not yet available online, a summary of the report notes that...
Family of five perishes in Juja inferno
Police said a woman, three children - all aged below 10 years, and a man were found early Tuesday morning
Americans urged to support conservation
Conservation of nature in many countries in Africa contributes significantly to sustainable rural community livelihoods
It’s business as usual, Mike Sonko says
He dismissed reports that Igathe called it quits last Friday following disagreements arising from implementation of key projects and award...
Police mum on theft of State House furniture
Nakuru OCPD Samuel Obara told the press that only police headquarters in Nairobi or State House spokesman Manoah Esipisu can...
Uncertain future for 100 police officers recalled from NTSA
The Director of Personnel at Vigilance House, the Kenya Police Service nerve centre, Boniface Maingi asked the commanders to send...
Fred Matiang’i: Second most powerful man after President Uhuru
The no-nonsense Cabinet Secretary has become Uhuru Kenyatta's Mr Fix It in government affairs in the processing getting big ministries...
Jubilee script goes haywire as Igathe quits
Details on boardroom rifts started emerging when Sonko shared screenshots of private Whatsapp conversations with his deputy as he fought...