Imperial Bank depositors can now access 12.5% of their deposits after the Central Bank of Kenya and the Kenya Deposit Insurance Company (KDIC) accepted the final offer from Kenya Commercial Bank (KCB) group.
The Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC) announced the acceptance of the binding offer on December 11, 2018.
In a statement, KDIC and CBK said the depositors would access the funds in another two weeks subject to verification.
“The accepted Final Offer includes a further recovery of 19.7 percent of eligible depositor balances remaining at IBLR. CBK and KDIC assess that KCB’s Binding Offer represents a viable proposal for the further resolution of IBLR, for the benefit of depositors and the strengthening of the Kenyan financial sector. It is expected that the transaction will be concluded expeditiously,” said CBK and KDIC in a joint statement.
However, the recovery of customer deposits does not include the realisation of approximately KSh 36 billion of loans. “This translates to 50 percent of the current loan balances, linked to ongoing litigation, and which CBK and KDIC continue to pursue for the benefit of depositors and creditors.”
“CBK and KDIC will be working closely with other banks to verify and consider uptake of the remaining loan assets to enhance further recovery,” the statement reads.
In the deal, KCB will take over five branches of IBLR. “CBK and KDIC continue to explore options for the remaining staff and branches.”
Imperial Bank Limited (In Receivership) was placed under receivership in October 2015.