A Nairobi court has on Thursday (29/06/17) ordered former Chase Bank chairman Mohammed Zafrullah Khan to present two Kenyan sureties totalling Sh60 million to secure his freedom pending his trial.
Senior Principal Magistrate Martha Mutuku indicated that she would issue a comprehensive ruling on Monday.
The magistrate also allowed Mr Khan to travel to the US to seek medical treatment within 30 days.
She, however, ordered that Mr Khan deposit his passport in court after the expiry of the 30 days.
“Bond is hereby granted in the following terms: that the accused shall present two Kenyan sureties of Sh30 million each and who should be verified by the investigating officers,” directed Ms Mutuku.
The former Chase Bank boss was charged with conspiring to defraud the bank of Sh1,683,000,000.
He was also charged with several counts of stealing from Chase Bank and one count of failing to comply with provisions of the Proceeds of Crime and Anti-Money Laundering Act.
Khan also faced an alternative charge of failing to report suspicious transactions. He, however, denied all the charges.
Police officers had on Tuesday night arrested and detained him after the Director of Public Prosecutions (DPP) Keriako Tobiko ordered his prosecution in connection to the case.
Mr Tobiko had ordered that he and six other former Chase Bank officials be prosecuted over corruption claims that led to the bank being placed under receivership.
In March, Central Bank of Kenya (CBK) and the Kenya Deposit Insurance Corporation (KDIC) extended the bank’s receivership period by six months to find a new strategic investor.
In a statement, CBK indicated that the formal process of picking the new investor would take six months.
“Following the receipt and evaluation of EOIs, a shortlist of qualifying investors (“Shortlisted Investors”) will be granted access to a comprehensive confidential data room to develop a formal proposal to acquire Chase Bank (Kenya) Limited,” the bank said in a statement.
CBK placed Chase Bank under receivership following liquidity problems in April.