A rumor about Chase Bank's collapse spread quickly on social media, leading to mass withdrawals.
This followed the resignation of senior management and the revelation that the bank's books were not accurate, with 8 directors having awarded themselves over Sh10 billion in loans, which were then reportedly declared non-performing.
Central Bank of Kenya (CBK) Governor Patrick Njoroge stated that more than Sh8 billion was withdrawn in a matter of hours, causing the bank to struggle.
Sportpesa, one of Chase Bank's largest account holders, was listed as a partner on the bank's website.
Reports on social media suggested that a significant portion of the Sh8 billion withdrawn from Chase Bank was made by Sportpesa, although this has not been officially confirmed.
If true, this would mean that Sportpesa played a role in accelerating the bank's financial difficulties.
However, it is worth noting that Sportpesa also holds accounts at Standard Chartered Bank, which may have helped safeguard their funds.
An update indicated that Sportpesa had moved over Sh4 billion from Chase Bank in the preceding days.
The recovered account cited reporting by Nairobi Wire.
