CBK extends Imperial Bank receivership by six months

October 4, 2016
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KDIC will maintain the management and control of the bank and advise CBK of a resolution strategy as soon as it is practicable and not later than six months from October 13, 2016/FILE
KDIC will maintain the management and control of the bank and advise CBK of a resolution strategy as soon as it is practicable and not later than six months from October 13, 2016/FILE

, NAIROBI, Kenya, Oct 4 – The Central Bank of Kenya (CBK) has extended the appointment of Kenya Deposit Insurance Corporation as receiver of the bank for a further six months.

The regulator says the move follows a request by KDIC for an extension as the 12 months’ receivership term nears end.

KDIC was appointed to take over the management of the bank on October 13, 2015 due to unsafe and unsound practices.

KDIC will maintain the management and control of the bank and advise CBK of a resolution strategy as soon as it is practicable and not later than six months from October 13, 2016.

“The appointment was carried out in the interest of the bank’s depositors, creditors and members of the public, since the appointment, progress has been made towards a resolution of the bank’s receivership with the objective of safeguarding the interest of Depositors creditors and the wider public interest,” CBK states.

CBK and Imperial Bank Directors have been locked in court battles with the latest being CBK seeking to freeze assets worth Sh45 billion from the directors.

CBK and KDIC are also seeking orders to seize all the known property and assets of the shareholders and directors in Kenya.

Depositors have just accessed a portion of their money as resolutions continue.

In July 2016, Imperial Bank depositors were able to access up to Sh1.5 million while NIC Bank assumed the majority of Imperial Bank Limited staff and branches.

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