Home Business Imperial Bank Depositors to Start Receiving Their Money in Two Weeks

Imperial Bank Depositors to Start Receiving Their Money in Two Weeks

by kenya-tribune

DEPOSITORS of Imperial Bank Limited (in Receivership) will start receiving their money in two weeks time, Central Bank of Kenya and Kenya Deposit Insurance Corporation have announced.

On 27 September 2018, CBK and KDIC had earlier advised KCB to revise its proposal to buy IBLR as its initial offer did not reflect optimal value for the depositors.

In a letter dated 7 December 2018, KCB submitted a modified Binding Offer paving way for the release of the depositor’s money.

“KDIC and CBK are pleased to announce the acceptance of the Binding Offer from KCB,” read a joint statement from the two institutions.

The Binding Offer accepted, includes granting access to 12.7 percent of eligible depositor balances remaining at IBLR within two weeks, subject to account and identity verifications. Combining this with earlier disbursements will result in a total recovery of approximately 35 percent of original eligible deposits held at the date of receivership.

The Binding Offer also states that KCB will complete the loan verification process within the first quarter of 2019. This is expected to complete the payments to the remaining IBLR depositors.

“CBK and KDIC assess that KCB’s Binding Offer represents a viable proposal for the resolution of IBLR, for the benefits of the depositors and the strengthening of the Kenyan financial sector,” read the statement.

IBLR went into receivership on October 13, 2015 due to loss of over Ksh34 billion related to fraud.

At the time, it held KSh58 billion in customer deposits and had 52,398 deposit accounts.

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