National Bank Scandals: Bad Debts Threaten Lender

The Kenyan Digest has received reports that the Joker at the Central Bank of Kenya refused to sign Q3 Accounts last week but was hoodwinked into signing them as a crisis looms at the once great bank.

It has however remained a mystery as to why the Central Bank of Kenya continues to allow the bank to operate despite the red lines like that Imperial Bank of Kenya showed before sinking. A few months ago, various media outlets reported that the bank, Under Kenya’s youngest CEO Wilfred Musau had gone red on various set ratios.

The share price of the ailing lender has dropped from Ksh 9.15 to Ksh 4.95 this year when there were rumours that the Kenya Commercial Bank was planning to buy it, reports that could not be independently verified.

An expert that we spoke to but was not ready to be quoted had this to say:

To play with Kenyans minds, the ill-fated bank’s management started wooing depositors with savings plan despite the fact they are struggling to carry out normal RTGS transactions which are delayed in the bank for more than 3 weeks at times till it reflects at the correspondent bank. It is this way as they have to wait for collections at end month then settle large outstanding transactions. It is obvious that the looting did not stop with the exit of Munir Ahmed, the crook that bought his way out.

In March 2018, the bank lost an opportunity to onboard a $50m placement credit line from a correspondent bank due to the unsatisfactory response to the sexual harassment allegations which appeared in the Business Daily against the “Hands-On CEO”.

We can confirm that the bailout which they are now expecting is yet to hit the lender’s accounts due to disagreements between themselves, top shareholders, National Social Security Fund and the National Treasury.