Kenya’s biggest lender KCB Group has acquired assets valued at Ksh.3.2 billion and assumption of liabilities of the same value of Imperial Bank effective June 2, 2020, the Central Bank said Friday.
“From June 2, 2020, IBLIR depositors will be paid a total of Ksh.3.2 billion over a period of four years. Subsequently, the depositors will have cumulatively recovered 37.3 percent of the deposits since 2015 when payments were commenced,” said the Central Bank of Kenya.
This follows approval by CBK on May 4 and the Cabinet Secretary for the National Treasury and Planning on May 14, 2020 pursuant to Section 9 of the Banking Act.
“The acquisition will see the assets and liabilities of KCB grow to Kshs 950.3 billion and Kshs 814.7 billion,” Cytonn Investments note.
KCB Group owns banking subsidiaries in the East African region; Uganda, Tanzania, Rwanda, Burundi, Ethiopia (representative office), and South Sudan.
It is the largest bank in Kenya with a market share of 14.5 percent as at end-March 2020.
Imperial Bank was placed under receivership on October 13, 2015 due to inappropriate banking practices and the Kenya Deposit Insurance Corporation (KDIC) appointed by CBK as the receiver.