NAIROBI, Kenya, Oct 1 – The Central Bank of Kenya (CBK) has sued Imperial Bank directors and is seeking to freeze assets worth Sh45 billion held in more than 40 companies.
CBK and Kenya Deposit Insurance Corporation are also seeking orders to seize all the known property and assets of the shareholders and directors in Kenya.
Under the Banking Act, the directors and shareholders jointly owed its depositors fiduciary duty first and foremost, acting as trustees of assets placed under their control.
Due to numerous breaches of this fiduciary duty the directors are accused of jointly allowing the theft.
The court was told the 10 directors were under regulatory and statutory obligation to apply and comply with guidelines by the CBK.
CBK carried out annual routine inspections through its bank supervision department over the years.
During the inspection, it identified a number of violations in management and lending among others.