Was Sportpesa Responsible for Chase Bank ‘Collapse’ ?

April 8, 2016

spesaThere is nothing as dangerous as a rumor.
On Wednesday, word quickly spread on social media that Chase Bank was collapsing. This followed the resignation of senior management, and revelation that their books weren’t right.
Apparently, 8 directors had awarded themselves more than Sh10 billion in loans, and then reportedly declared them non-performing loans. ie. loans which are no longer being repaid.
Recently, Dubai and Imperial banks went under and we saw the agony of Kenyans who could not access their money.
No one wants to be in similar shoes, and the Chase Bank rumors led to mass withdrawals.
According to CBK Governor Patrick Njoroge, more than Sh8 billion was withdrawn in a matter of hours, and the bank could no longer cope.
It happens that Sportpesa was one of Chase Bank’s biggest account holders, if not the biggest. They listed them on their site as a partner.
Some reports on social media claim that a big chunk of the Sh8 billion withdrawals at Chase Bank on Wednesday was made by Sportpesa.
Well, you can’t blame them for protecting their money, but if there’s any truth in it, then they are responsible for accelerating the ‘collapse’.
All in all, your sportpesa money is safe since they also bank at Standard Chartered… which is actually a good lesson in not putting all your eggs in one basket.
Update: Some reports have it that Sportpesa moved more than Sh4 billion from Chase Bank in the last few days.

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