Chase Bank is back, now let’s keep it open

Depositors of Chase Bank Kenya yesterday heaved a huge sigh of relief after the bank opened the doors of all its 57 branches across the country.

With the help of Central Bank of Kenya (CBK) and Kenya Commercial Bank (KCB), which will manage the bank for the period it remains under receivership, Chase Bank depositors will access a maximum of Sh1 million of their deposits.

It has been three agonising weeks for these depositors whose only crime was entrusting Chase Bank with their hard-earned money. The reopening the bank is not only good news to its depositors, but also to the entire banking sector, which has been reeling under a confidence crisis.

Last year, two other commercial banks - Dubai and Imperial - were placed under receivership for flouting a number of CBK guidelines. CBK, led by the no-nonsense governor, Patrick Njoroge, has done a good job to resuscitate the bank by pumping some much-needed confidence into the sector. That the bank was reopened in a record three weeks is immensely commendable as it is unprecedented.

However, there is still much to be done. Even though happy that finally they could access their cash, the faces of the depositors still wore masks of uncertainty and apprehension. And their fears are not misplaced.

The underlying issues that contributed to this mess are still alive. It seems like the laws, which are invariably many, have not deterred rogue bankers from fleecing depositors.

Central Bank of Kenya needs to increase its supervisory role. And it is not enough to induce fear by wielding its big stick, it needs to start using it.

Kenyans want to see heads roll. Those who breached depositors’ trust and stole their money ought to face the full force of the law.