CBK orders liquidation of Dubai Bank

August 24, 2015
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On August 18, CBK had indicated that with liquidation process, all insured deposits shall be paid by KDIC up to a maximum of Sh 100,000 per depositor/FILE
On August 18, CBK had indicated that with liquidation process, all insured deposits shall be paid by KDIC up to a maximum of Sh 100,000 per depositor/FILE
NAIROBI, Kenya, Aug 24 – The Central Bank of Kenya (CBK) has given the go-ahead for the closure of Dubai Bank Kenya and appointed Kenya Deposit Insurance Corporation (KDIC) as the liquidator as per the law.

KDIC, which was earlier named the receiver when the bank was put under receivership, will now have the task of ascertaining liabilities and dividing the assets of the bank among depositors and other relevant stakeholders.

“On August 24, 2015, KDIC submitted a report to CBK recommending that Dubai Bank Kenya Limited be liquidated…The KDIC report indicates that considering the magnitude of weaknesses of Dubai Bank Kenya Limited, liquidation is the only feasible option,” Central Bank said on Monday.

On August 18, CBK had indicated that with liquidation process, all insured deposits shall be paid by KDIC up to a maximum of Sh 100,000 per depositor.

Any balances above Sh100,000 will equitably paid as and when the liquidator accumulates enough funds from sale of assets of the collapsed bank and recoveries from outstanding loans and debts.

“KDIC will release information about the liquidation of Dubai Bank Limited and payment of depositors in due course,” CBK said.

KDIC expects to finalize the assessment of Dubai Bank and take a decision on the resolution method by August 31.

It will later on September 1 inform the depositors, creditors and all other stakeholders the next process regarding access to their deposits, rights and obligations.

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