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Report: Kenya orders arrest of National Bank, Chase Bank execs

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Report: Kenya orders arrest of National Bank, Chase Bank execs

Eight senior directors of National Bank of Kenya Ltd and were askedApril 8 to turn themselves in to Kenya's Directorate of CriminalInvestigations, Business Daily Africareported the same day.

According to the newspaper, the executives whose arrest hasbeen ordered include National Bank of Kenya Managing Director Munir Ahmed, CFO ChrisKisire, IT Director Mohammed Abdalla, Chief Credit Officer George Jaba andexecutive director Boniface Biko, as well as Chase Bank Chairman Zaffrulah Khanand Group Managing Director Duncan Kabui, who both recently .

The order came after the Central Bank of Kenya placed Chase Bank into receivership for 12 months due toliquidity issues.

Business Daily Africasaid separately April 8 that, according to the central bank, Chase Bank lent16.6 billion Kenyan shillings in irregular unsecured loans to various entities,including many linked to insiders. One of the bank's directorsreportedly received loans worth 7.9 billion shillings without any collateral.

"What we have seen at Chase Bank is a situation wherethe auditor has expressed major concerns regarding recoverability of loans andunsecured insider lending," said Central Bank of Kenya Governor PatrickNjoroge.

Earlier on April 8, Kenya's Finance Minister Henry Rotichsaid that, despite Chase Bank going into receivership, the country's financialsystem was very sound, Reuters reported the same day.

As of April 7, US$1was equivalent to 101.35 Kenyan shillings.