The Central Bank of Kenya (CBK) and the Kenya Despisit 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.
Closure in sight for depositors of Imperial Bank with CBK's acceptance of binding offer from KCB. Payment of 12.7% of eligible balances to depositors. Unfortunately, balance of deposits will be lost. https://t.co/jlVRctqfBW
— Sunil Sanger (@Sang252) December 11, 2018
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.