KCB Group has completed the acquisition of some assets and liabilities of Imperial Bank (Kenya) limited valued at KSh3.2 billion.
Central Bank of Kenya approved the deal on May 4 and the Cabinet Secretary for Treasury and Planning gave the green light on May 14, 2020.
KCB will from June 2, 2020 pay Imperial Bank depositors a total of KSh3.2 billion over the next four years. Subsequently, depositors will have cumulatively recovered 37.3 percent of the deposits since 2015 when payments commenced.
Imperial Bank was placed under receivership in October 2015 following inappropriate banking practices.
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.