The Family Bank has said rumors that it would be put under receivership are false and reassured its 1.7 million customers  “We are open for business and you can count on us to continue serving you. Rest assured that we will live up to your expectations.”

In a statement the bank said it was 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 return that we make as required by law.”

NYS Scandal

The rumors came days after Central Bank Governor Patrick Njoroge endorsed the prosecution of the bank’s top officials over the Sh1.6 billion NYS scandal.  Njoroge had said such prosecution would not have adverse effects on the banking industry but would instead deter others from engaging in similar activities.

Family Bank chairman Wilfred Kiboro said rumor mongers had asked customers  to withdraw their savings to avoid from losing them.

He said these were “negative statements and malicious rumors” aimed at tainting the bank’s image.

Mr. Kiboro said the bank will continue offering services at all its branches across the country despite its being mentioned in the National Youth Service scandal.

Customer Concern

Bank customers in Kenya are concerned about the welfare of banking institutions in Kenya following the placement of Imperial and Chase banks under receivership.

Customers have had to endure many problems including losing money or closing their businesses when banks are put under receivership without notice. In the rare event that a bank under receivership is not liquidated, it takes eternity for it to reopen.

An example is that of Imperial Bank which Central Bank of Kenya put under receivership and still in the same status more than a year after although it was supposed to be under receivership for only 12 months.