- Kenya Ports Authority grapples with hole created by amount held in collapsed lender since 2016.
- Regulators placed the mid-sized Chase Bank under receivership in April 2016 after an unexplained loss of billions of shillings.
Auditor-General Edward Ouko has raised doubts over whether Kenya Ports Authority (KPA) can recover Sh3 billion it deposited in Chase Bank four months before it was placed under receivership in April 2016.
Mr Ouko said it remains unclear whether the KPA would recover the billions placed in fixed deposits as the Central Bank of Kenya seeks a buyer to revive the bank.
“Under the circumstance, it is not possible to confirm recoverability of the short-term deposits totalling to Sh2,957,000,000 invested in Chase Bank as at June 30, 2016,” he said in a qualified audit opinion of the KPA books of accounts dated July 7, 2017. The fixed deposits have matured.
Regulators placed the mid-sized Chase Bank under receivership in April 2016 after an unexplained loss of billions of shillings.
Mr Ouko said the KPA financial statements reflect short-term deposits balance of Sh12,540,442,000 in the year under review, an increase of Sh3,302,558,000 from the balance of Sh9,237,887,000 in the year to June 30, 2015.