KCB sets sights on prime Imperial Bank branches

Kenya Commercial Bank (KCB) #ticker:KCB will acquire prime Imperial Bank branches following a takeover of the collapsed lender’s loan book, the lender and the Kenya Deposit Insurance Corporation (KDIC) said yesterday.

KDIC chief executive Mohamud Ahmed said Kenya’s largest bank by assets is conducting due diligence that will pave the way for takeover of the unnamed branches.

“KDIC has interested KCB, and they have confirmed they will take up some branches,” Mr Mohamud said yesterday when he joined KCB chief executive Joshua Oigara for a joint update on the start of partial payment of depositors money in the collapsed lender.

“We are at looking at some branches…It will be a few. It’s too early days but by January we will know. We will take a few,” added Mr Oigara.

Imperial Bank had 27 branches when it went under. Financial details of the takeover are yet to be made public.

Depositors will, effective Thursday, access 12.7 per cent or about Sh8 billion of deposit balances through KCB.

Those who will be claiming their funds for the first time through KCB are required to open an account with any of the KCB branches. Depositors who have claimed in the past through KCB need not fill a claim form and their available funds will be directly credited to their KCB accounts.

“This is a significant milestone, which is yet another convincing mark of Kenya’s financial sector’s ability to offer viable solutions benchmarked against global best practices,” said Mr Oigara.

“There will be no haircut,” added Mr Mohamud on fears for the safety of remaining money. The latest payment will result in a total recovery of approximately 35 per cent of original eligible deposits held as at the date of receivership.

Imperial bank sank into receivership on October 13, 2015 with a total of Sh85.068 billion belonging to 49,939 depositors. The Central Bank of Kenya on December 11 appointed KCB as an agent of KDIC, the IBLR receiver manager, to disburse the funds to depositors.