Regional lender KCB Bank has commenced payment of funds to remaining eligible depositors of Imperial Bank Limited (in receivership) (IBLIR) in the current tranche of disbursements.
In a statement, KCB said the exercise will see IBLIR depositors get partial access to their bank balances estimated at Ksh.3.2 billion to be paid over a period of four years.
This is equivalent to the total assets acquired by KCB over the period. Currently, 93 percent of eligible depositors have been fully paid.
On May 22, 2020, the Central Bank of Kenya (CBK) announced the acquisition of assets valued at KSh3.2 billion and the assumption of liabilities of the same value of IBLIR by KCB Bank, effective June 2, 2020.
“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 Joshua Oigara KCB Group chief executive.
This is the first payment as scheduled under the transaction that commenced in 2019.
The payments to eligible depositors were to be made as follows; 12.5 percent on completion of the 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.
Imperial Bank went into receivership in October 2015, collapsing with an estimated Ksh85 billion ($844.3million) belonging to 50,000 depositors.