Imperial Bank LTD/ Courtesy
NAIROBI Kenya, Dec 10- The Central Bank of Kenya has okayed the liquidation of collapsed Imperial Bank Limited ending the lender’s 20-year stint in the Kenyan market.
Imperial Bank Limited was established in 1992 as a Finance and Securities Company. In 1996, the bank commenced commercial banking services, following the issuance of a banking license by CBK.
The move by CBK means the lender’s remaining assets are up for sale.
The mid-sized lender was placed under receivership of the Kenya Deposit Insurance Corporation (KDIC) back on October 13, 2015.
This is after CBK learnt of massive fraud committed by managers and administrators through illegal transactions, which saw the siphoning out of about Sh34 billion
During this period, most of the money was used to pay depositors, including the sale of Sh3.2 billion assets and liabilities to KCB Bank last year.
“CBK has assessed the recommendation by KDIC, the external auditor’s report, other pertinent information, and considered that liquidation would facilitate the orderly resolution of Imperial Bank Limited- In Receivership (IBLIR) in accordance with the Laws of Kenya, to protect the interest of IBLIR depositors, its creditors, and the wider public interest. Subsequently, on December 8, 2021, CBK appointed the KDIC as liquidator of IBLIR in terms of Sections 53(2) and 54(1)(a) of the Kenya Deposit Insurance Act, 2012,” CBK Governor Patrick Njoroge said in a statement.
According to Njoroge, only 4,300 depositors, representing eight percent, are yet to get back their money in full.
“Following four payment disbursements, 45,700 out of the 50,000 (92 percent) depositors have accessed their funds in full,” Njoroge noted.
CBK has appointed KDIC to liquidate the bank and process payment for the remaining depositors, creditors and bondholders.
Other banks that have collapsed in the Kenyan market are Dubai, Prudential, Trust, Euro and Charterhouse.
