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KCB Group CEO and MD Joshua Oigara/FILE

Kenya

KCB Bank Pays Out Funds to Imperial Bank Depositors

NAIROBI, Kenya, Sep 6-  KCB Bank Kenya Limited has commenced payment of funds to remaining eligible depositors of Imperial Bank Limited which is currently under receivership.

The exercise that kicked off on Friday will see the depositors approved by the receiver manager Kenya Deposit Insurance Corporation get partial access to their bank balances.

On May 22, 2020, the Central Bank of Kenya announced the acquisition of assets valued at Ksh.3.2 billion and assumption of liabilities of the same value of IBLIR by KCB Bank effective June 2, 2020.

Effectively, IBLIR depositors will be paid a total of Ksh.3.2 billion (equivalent to the total assets acquired by KCB) over a period of four years. To date 93% of eligible depositors have been fully paid.

Currently, 93 per cent of eligible depositors have been fully paid as this is the first payment as scheduled under the transaction a part asset transfer that commenced in 2019.

“This is significant progress in our efforts to ensure that Imperial Bank depositors receive their long-awaited dues. We remain committed to support the recovery of funds and we are optimistic that these efforts will be a success in the fullness of time,” said KCB Group CEO and MD Joshua Oigara.

The payments to eligible depositors were to be made as follows; 12.5 percent on completion of signing of the agreement; 12.5 percent on the first anniversary of the signing; and 25 percent each on the second, third and fourth anniversaries respectively.

IBLIR is a privately owned commercial bank.

The lender was placed under receivership on October 13, 2015 due to inappropriate banking practices and the KDIC was appointed by CBK as the receiver.

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