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Blogger arrested over collapse of Chase Bank

Police have arrested a blogger accused of spreading false information concerning the banking sector through social media.

Inspector General Joseph Boinnet named the arrested blogger as one David Mukunzi Zawadi. But immediately, social media users made fun of the announcement since many could not find the blogger’s name on any social media platform.

“We will not allow unscrupulous members of the public to spread unfounded rumors and conjecture aimed at causing unnecessary fear and panic among the public,” Mr Boinnet said.

He said the suspect will be arraigned in court to face charges related to misusing of social media to disseminate falsehoods about the banking sector.


“We accordingly caution the public to be wary of such messages and refrain from disseminating them. In case of any uncertainty, they should obtain clarification from the authorities,” Mr Boinnet said.

Central Bank of Kenya on Thursday placed Chase Bank under receivership and appointed Kenya Deposit Insurance Corporation (KDIC) as the receiver manager for Chase Bank Limited for a period of twelve months, because of what the regulator termed as ‘Unsafe Financial Conditions’ leading to liquidity difficulties.

The CBK governor Patrick Njoroge blamed some social media users for partly being responsible for the run on the bank by its depositors on Wednesday, which accelerated its collapse.