Home East Africa Depositors of liquidated Imperial Bank to be paid in part

Depositors of liquidated Imperial Bank to be paid in part

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·        The Central Bank of Kenya (CBK)  has approved the acquisition
of Imperial Bank assets’ valued at Sh3.2 billion. Starting June 2,
2020, Imperial Bank depositors with enough collateral will be paid a
total of Sh3.2 billion over a period of four years.

·        Subsequently, the depositors will have cumulatively recovered
37.3 percent of the deposits since 2015 when payments were commenced.

CBK has also  approved the assumption of liabilities of the same value
by Kenya Commercial Bank (KCB). A month ago, KCB reduced the portion
of the loan book it intends to take over from the collapsed Imperial
Bank to Ksh3.5 billion. KCB had earlier  decided to take over Sh10
billion loans. It was later reduced to Sh5 billion. Subsequently, the
bank decided to further prune down to Sh3.5 billion,

The beleaguered Imperial Bank  has been under receivership  since
October 2015. It was under the management and control of KDIC as
decided by the central bank. In December 2018, KCB  was appointed  by
the central bank as an agent of Kenya Deposit Insurance Corporation
(KDIC)  to disburse the funds to the depositors.

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