KCB Bank Kenya has commenced the payment of funds to eligible depositors of Imperial Bank Limited
Imperial bank is under a receiver-manager Kenya Deposit Insurance Corporation (KDIC) which has approved the depositors to get partial access to their bank balances.
KCB in June completed the acquisition of assets valued at Ksh3.2 billion and assumed liabilities of the same value. KCB says it will pay the Ksh3.2 billion over the course of four years in four tranches.
This first payment to eligible depositors will be 12.5 percent, which amounts to Ksh384 million as per the agreement. Depositors will get 12.5 percent on the first anniversary of the signing, 25 percent each on the second, third, and fourth anniversaries respectively.
The KSh3.2 billion value is a revision downwards from the initial KSh10 billion worth of loans that KCB had identified for a takeover before cutting the target to KSh5 billion. Furthermore, KCB emphasizes that this is an asset transfer deal rather than an equity acquisition.