Kenya: Central Bank Locks Failed Banks’ Bosses Out of New Jobs

The Central Bank of Kenya (CBK) has tightened the noose around former senior executives of failed banks, making it hard for them to take up managerial positions in other banks.

The move has left about 10 former Chase Bank executives and at least one Dubai Bank manager in a professional quandary, having been denied clearance by the regulator.

Some of the former Chase Bank staff had sought employment at Sidian and Gulf African banks.

The CBK’s action is in line with prudential guidelines that require every bank to seek clearance from the regulator upon retaining services of any person at a senior level.

Gulf African Bank on Sunday confirmed that two of its senior staff who worked at Chase Bank have not received CBK clearance.

“They are yet to get the clearance, and meanwhile we have not granted them any approval power,” Mr Abdalla Abdulkhalik, the CEO, told the Business Daily on phone.

Mr Abdulkhalik said one of the employees, who was hired in a senior management position, was yet to receive any clearance and could therefore not exercise any power of approval, adding that she was on her way out.

Another employee, who was hired to head another department, is also yet to receive his clearance, more than a year on the job.

Mr Abdulkhalik said the Islamic bank had received correspondence from the CBK raising issues on the employee’s suitability, which have since been clarified and is awaiting response from the CBK.

The CBK did not respond to our queries but instead asked that the questions be directed to the commercial banks involved “as they would be the applicants in this process.”

“This is not information we are not at liberty to disclose,” said CBK in the statement.

Speedy exits

At the Sidian Bank, three former Chase Bank employees who were hired in various positions have since left the bank, but the lender declined to disclose reasons for their speedy exit.

The bank said in response to questions on the subject that ‘all Sidian Bank Executive Team members who applied for a Fit and Proper Approval from CBK, had been cleared’.

Sidian Bank marketing and communication manager, Grace Mukami, declined to indicate whether those who left the firm had received the approval or not, insisting that the bank could not discuss its former employees with third parties.

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