The Central Bank of Kenya (CBK) has received a 70-day extension period for Imperial Bank’s receivership. The extension period granted by the High Court will give CBK more time to negotiate a better deal with KCB.
CBK announced that KCB was the leading bidder in the acquisition of Imperial Bank which was placed under receivership after it collapsed in October 2015.
Late last month, the CBK announced its plans to seek an extension of the receivership period for the fourth time.
“We need more time to get a better deal. The biggest issue now is the valuation of the loans,” CBK governor Dr Njoroge said.
The Extension Period
The bank’s depositors have received the extension well but they want things done differently this time around.
“We can only hope now that CBK and KDIC deliver promises that were made during our meeting at the Intercontinental hotel,” wrote Alexander Sarikas on the IBL Depositors Lobby Group on Facebook. “I hope that the 70-days extension will finally be utilised to a full recovery even if structured but always keeping the well being of depositors in mind and not just the financial institutions. This was theft. There is no cushioning description. We have cooperated and suffered for three years. The time for being rewarded and the institutions to come through glittering is NOW!”
The CBK had planned to complete the acquisition transaction by the end of June 2018.
