KCB will take over 7.5 % of the outstanding deposit balance of Imperial Bank’s deposits. The deal will push the recovery rate to depositors of Imperial Bank (under receivership) reach 40%. The total recovery rate will reach Kshs 31.7 billion the total amount of eligible deposits of Ksh. 70.9 billion. However, the recovery rate will not include loan balances undergoing legal verification.
The new recovery will help depositors access their funds as CBK and KDIC pursues outstanding loan balances. Furthermore, KDIC and CBK will seek assistance from other players to facilitate the recovery process. On the extreme end, the parties will consider uptake of loan assets to facilitate the recovery.
A press release reads, ” KDIC and CBK undertakes to continue pursuing the outstanding loan balances for the benefit of depositors and creditors. In addition, the two institutions will collaborate with other financial institutions to authenticate and consider uptake of the remaining loan assets to enhance further recovery. “
