Central Bank of Kenya said on Wednesday that 89% percent of depositors in Imperial Bank, which was taken into receivership in October because of fraud, would receive their full deposits back.
Governor Patrick Njoroge told a news conference the private shareholders had said they were “interested in recapitalising” the bank but had not presented a plan till now to allow it to re-open, so liquidation was still an option.
The depositors will access their cash via KCB Group and Diamond Trust Bank after the state-owned receiver reached a deal with the two institutions to process payments.
“This follows the failure of IBL’s shareholders to provide adequate assurances to implement a proposal that would enable the prompt reopening of IBL and resumption of normal activities for its customers,” central bank governor Patrick Njoroge told a news conference.
Valid deposit claims could start being paid “in the next few weeks,” Njoroge said, adding 44,300 depositors “will get full access to their deposits … Thus, 89 percent of depositors will be paid in full.”
The remaining 5,700 depositors, who each had more than 1 million shillings ($9,800) with the bank, would receive a maximum of 1 million shillings at this stage, while more could be paid later, the governor saidSOURCE; CBK
