The former chairman of one of the banks at the heart of Kenya’s 2016 Banking crisis has been arrested. Zafrullah Khan, the ex-chairman of Chase Bank Kenya was arrested on Tuesday by detectives from the Banking Fraud Unit and is expected to appear in court on Wednesday.
Mr Khan was taken in for questioning by police over allegations of accounting irregularities, theft, money laundering and his role in the bank’s collapse in April 2016.
At the insistence of the Central Bank, Khan & Mr Kabui stepped down as the bank’s chairman and CEO respectively over the credibility of the bank’s financial statements.
Mr Khan is accused of having falsified Chase Bank’s accounts to illegally draw Sh7.9 billion in personal loans without sufficient security as required by the Central Bank of Kenya.
As a result, the Central Bank of Kenya has started legal action against him and others in an attempt to recover the stolen cash. State prosecutor Keriako Tobiko has also opened a series of proceedings against most of Chase Bank’s former executives suspected of malicious acts and ruinous management.
Central Bank of Kenya (CBK) has since seized property belonging to the Bank’s former executives including Mr Khan’s family.