Sharp Daily
No Result
View All Result
Saturday, June 14, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Mass Withdrawals As First Community Bank Faces Uncertain Future

Sarah Wamaitha by Sarah Wamaitha
October 5, 2022
in News
Reading Time: 2 mins read
First Community Bank

First Community Bank.[Photo/Courtesy]

First Community Bank has responded to the cash withdrawal crisis experienced on Tuesday, October 4, 2022, at the Wabera Street branch in Nairobi, leaving customers in a state of panic.

The bank’s woes came to light after it disclosed that system outages were causing delays in most of its services since last week. This led to panic withdrawals, fueling worries that a bank run was looming.

A bank run occurs when several depositors simultaneously withdraw large sums of money from banks out of concern that the institution will go bankrupt.

Read: KCB Named The Best Bank In Sustainable Finance

RELATEDPOSTS

Bridging talent and job creation in Kenya

June 12, 2025

Artificial intelligence: Kenya’s next frontier for innovation

January 29, 2025

Customers were not permitted to withdraw more than Ksh10,000 per day from the branch, and no cheques were cleared. Responding to the recent event, the bank stated that they were experiencing a system hitch that strained operations and that they received approvals from The Central Bank Of Kenya (CBK) to limit withdrawals as a precautionary measure.

“We acknowledge that our customers may currently be experiencing challenges in some of their transactions occasioned by panic withdrawals informed by malicious rumours,” the bank said.

Read: Sidian, Victoria Commercial Banks Receive Ksh3.36 Billion For SME Lending

“These unprecedented withdrawals have caused a strain on our daily operations, necessitating the Bank under the guidance of the regulator to limit some services. We are working very closely with all our stakeholders to ensure that we continue to offer good and reliable Shari’ah-compliant banking services to Kenyans.”

As of June of this year, the bank, which has a 0.38 percent market share and is ranked 27th out of Kenya’s 39 banks, has Ksh22.2 billion in deposits. The bank’s core capital at the end of 2021 was Ksh1.1 billion, which was slightly over the Ksh1 billion recommended lower limit contrary to the previous two years, where the bank had missed the mark in both 2020 and 2019.

CBK in the recent past mediated agreements to prevent the collapse of banks, such as the sale of Spire Bank’s assets to Equity Bank.

Dubai Bank was placed under receivership in August 2015, followed by Imperial Bank in October of the same year. On April 7, 2016, Chase Bank was also placed under receivership after experiencing financial troubles that left its depositors and creditors scrambling.

Former Chase Bank boss Zafrullah Khan one of the 29 shareholders at FCB owns a 2.7% stake with 135,059 shares making him the sixth biggest shareholder.

Opportunity Logistics Services Ltd owns 811,000 shares, which equates to 16.5 per cent, the largest shareholder being a firm owned by businessman Hussein Ali Salad. Ameir Munif Abdallah Nadhi and Said Edha Abdallah Nadhi each have 805,000 shares, making them the joint second biggest shareholders.

The former Chase Bank CEO is accused of defrauding the firm of more than Ksh1.6 billion through fraudulent lending and bonus schemes. In an effort to recover Ksh14 billion, the Kenya Deposit Insurance Corporation (KDIC) has also filed a civil lawsuit against Mr Khan and a number of other former Chase Bank executives.

While Zafrullah Khan invested millions of dollars in the banking industry due to his passion for the field, he faced a lot of adversities. FCB shares remain the only profitable investment Mr Khan has left in the industry, as per public record.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

Family Group Foundation, Adanian Labs Africa To Train 250 Youths On Software Development

Next Post

Museveni Apologizes To Kenyans Over Son’s ‘Misconduct’

Sarah Wamaitha

Sarah Wamaitha

Related Posts

News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025
News

The downside of Impact Investing

May 2, 2025
News

Leadership challenges at the University of Nairobi

April 24, 2025
News

Easter eggs and earnings: Growing your nest egg with CMMF

April 16, 2025
News

Geoffrey Ruku declares KES 377M net worth during CS vetting

April 15, 2025

LATEST STORIES

Innovation in finance: How Kenya’s financial sector is evolving

June 13, 2025

The false middle class: Chasing comfort in an economy of survival

June 13, 2025

Why the gig economy needs better financial integration

June 13, 2025

Kenya’s anti-money laundering gaps threaten investments

June 13, 2025

Contrarian investing in Kenya.

June 13, 2025

Still sending tier II contributions to NSSF by default? Time to reconsider.

June 13, 2025

Preparing for the Great Migration

June 13, 2025

How governance overhauls can save struggling banks

June 12, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024