CBK Okays Sale of Imperial Bank Assets Says “Only Feasible Option”

Kenya Deposit Insurance Corporation (KDIC) and the central bank on Thursday said the remainder of Imperial Bank will be liquidated.

According to the KDIC’s Receivership Report to CBK, recommended that  IBLIR be liquidated. 

“The report indicates that considering the weak status of IBLIR’s financial position, liquidation is the only feasible option.”

Consequently, the CBK says from its assessment of the report, it “considered that liquidation would facilitate the orderly resolution of IBLIR…, to protect the interest of IBLIR depositors, its creditors, and the wider public interest.”

“KDIC (Kenya Deposit Insurance Corporation) will release information about the liquidation … and payment of depositors in due course,” the bank said in a statement.

Imperial Bank was placed under receivership on October 13, 2015, due to inappropriate banking practices and the Kenya Deposit Insurance Corporation (KDIC) was appointed by CBK as the receiver.

CBK says from June 2, 2020, the lender’s depositors were to be paid a total of Ksh.3.2 billion over a period of four years. Subsequently, the depositors would have cumulatively recovered 37.3 per cent of the deposits since 2015 when payments were commenced.

“Following four payment disbursements, 45,700 out of the 50,000 (92 per cent) depositors have accessed their funds in full.”