(Ecofin Agency) - Central Bank of Kenya announced in a statement published on April 7 it has placed Chase Bank Ltd under receivership for a year to protect its creditors, depositors and all its clients. “Chase Bank Ltd experienced cash flow difficulties following inaccurate social media reports and the stepping aside of two of its directors. The bank was not able to meet its financial obligations on April 6, 2016,” the Central Bank said in its statement.

“In light of the above, we have appointed the Kenya Deposit Insurance Corporation (KDIC) to assume the management, control and conduct the affairs and business of the institution temporarily,” CBK added.

Chase Bank, which is a medium-size bank owned by private investors, recently confirmed the news regarding its Chaiman, Zafarullah Khan, and Managing Director, Duncan Kabui, stepping aside with no reasons.

Chase Bank is Kenya’s third bank to be placed under receivership since June 2015, after Dubai Bank and Imperial Bank. The fall of the latter raised many concerns about the health of Kenya’s banking system. However, Governor of Central Bank on April 7, said “there is no systemic problem” in Kenya’s banking sector.