Top Imperial Bank Depositors to received end with 35% of funds

EDIT April 5, 2019: CBK and KDIC announced that they have accepted a final and revised offer from KCB for Imperial Bank that is 19.7% over and above the 35% recovery announced in December 2018. The remaining depositors of Imperial will be paid 12.5% of the funds with the signing of the agreement, 12.5% on the first anniversary and then 25% over the subsequent three years during which their funds will earn interest.

KCB will take over five branches of Imperial as KDIC and CBK will explore further options for the remaining branches (Earlier it been announced that NIC bank would take over Imperial’ s branches). The deal excludes Kshs 36 billion (~$360 million) of loans that are being pursued through litigation in the courts.

Original December 16, 2018: The Central Bank of Kenya (CBK) and the Kenya Deposit Insurance Corporation announced the conclusion of the Imperial Bank receivership that will probably not satisfy customers who still had vast sums deposited at the bank that was suddenly closed in 2015.

KDIC and CBK announced  they had accepted a modified biding offer from KCB, Kenya’s largest bank for Imperial Bank (in receivership) that comes with a payment of 12.7% of the balances that were owed to the remaining depositors.

Since making a first payment in three years ago through KCB and Diamond Trust, of up to Kshs one million that took care of most of teh small depositors, further payments have been availed  to larger depositors. But with the acceptance of the offer today, they will have only accessed 35% of the deposits held in the bank when it was placed under receivership, with the balance of the funds now uncertain.

A loan verification process will be done through teh first quarter of 2019 after which depositors may be able to receive more of their funds

The collapse of the bank started in the days after the the sudden death of its Managing Director, after which revelations of fraudulent accounts he managed, secret off-the-book loans, fishy undocumented cash transfers came to light.