November 21, 2016


‘We are stable’ says Family Bank after a scary message was put out suggesting otherwise. A businesswoman was arrested for doing so.

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‘We are stable’ says Family Bank after scare

‘We are stable’ says Family Bank after scare

The management of Family Bank has assured its customers that the institution is stable, in the wake of rumours that cited that the bank was about to be put under receivership by the Central Bank Of Kenya (CBK), which occasioned a bank run at the financial institution, with panicked customers rushing to withdraw their money the last couple of days.

“Hi guys if you (have) money with Family Bank, kindly make sure you withdraw by kesho afternoon. CBK is expected to put the bank under receivership due to the nys scandal. This information is verified and yet to be in the public domain,” read the message that was circulating on WhatsApp.

The bank’s Chief Executive Officer, David Thuku has maintained through a statement that the bank remains stable and is even performing better and that they are continuing with their growth strategy by opening new branches in the next few months.

We can confirm that we are in a strong financial position and well within the statutory requirements as governed by Central Bank of Kenya, a fact that is easily confirmed through the returns we make as required by law”.

“We wish to reassure our 1.7 million customers that we are open for business and you can count on us to continue serving you. Be sure that we will ensure we live up to your expectations,” he said.

The woes facing Family Bank begun after its senior managers were linked to some of the fraudulent transactions made in the National Youth Service (NYS) scam but the management has said that the ongoing investigations have no bearing on the financial stability of the bank whatsoever.

In December last year, the bank has terminated the employment of nine managers who were adversely mentioned in the Sh791 million National Youth Service scam. Early this month, CBK governor Patrick Njoroge endorsed the prosecution of top officials linked to the scandal, a move that is said to have also provoked the rumours casting doubts on the bank’s stability.

Njoroge wants the bank and its senior staff punished for failing to report to the Financial Reporting Centre the significant transactions by NYS suspects.

Family Bank also announced last month that it was laying off some staff in an effort aimed at cutting costs, a move that the public interpreted as an indication of the bank’s instability.

Woman arrested over malicious alert on family bank’s stability

A businesswoman in Nairobi, Christine Gachiko Njeri, 35, was arrested on Friday by detectives from the Banking Fraud Investigation Unit (BFIU) for spreading the “false” alert that Family Bank was going under.


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