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NIC Bank was Wednesday appointed to take over most of IBL branches and staff on behalf of the Kenya Deposit Insurance Corporation/FILE

Kenya

Imperial Bank depositors to get Sh1.5mn as NIC absorbs staff

Central Bank of Kenya (CBK) Governor Patrick Njoroge says this follows a joint agreement between the Kenya Deposit Insurance Corporation (KDIC) and NIC Bank to provide the depositors with a portion of their money/FILE

Central Bank of Kenya (CBK) Governor Patrick Njoroge says this follows a joint agreement between the Kenya Deposit Insurance Corporation (KDIC) and NIC Bank to provide the depositors with a portion of their money/FILE

NAIROBI, Kenya, Jun 21- Imperial Bank depositors will now be able to access up to Sh1.5 million once a court order on the suspension of payments is lifted.

Central Bank of Kenya (CBK) Governor Patrick Njoroge says this follows a joint agreement between the Kenya Deposit Insurance Corporation (KDIC) and NIC Bank to provide the depositors with a portion of their money.

“With the endorsement of the CBK, the KDIC has today effected a joint agreement with NIC Bank Limited (NIC) that will provide depositors of Imperial Bank Limited (IBL) access to a portion of their deposits in a structured manner,” Njoroge said on Tuesday morning.

A High Court ruling on the suspension of payments is expected on July 4, 2016.

Njoroge says the agreement comes after Imperial Bank shareholders failed to provide adequate assurances to implement a proposal that would enable the prompt reopening of the bank and resumption of normal activities for its customers.

NIC Bank will also assume the majority of Imperial Bank Limited staff and branches.

The recovery of Imperial Bank Limited loans will continue, which will allow access to additional resources by depositors and other stakeholders. All Imperial Bank Limited borrowers are required to continue making payments on their loans.

The CBK says the forensic audit is still ongoing and will be concluded soon.

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