KCB Group and Diamond Trust Bank (DTB) have been picked by the Central Bank of Kenya as agents to disburse funds to depositors of Imperial Bank Limited (IBL-in receivership). CBK governor Dr Patrick Njoroge said the Kenya Deposit Insurance Corporation (KDIC) will provide funds to KCB and Diamond Trust Bank to be disbursed to the depositors.
Following the agreement with Central Bank of Kenya on Wednesday, both banks will from Monday December 7, 2015 kick off the process of registration, verification and authenticating of customers, to be carried out in selected banks’ branches across the country. Both banks expect to start disbursing the funds with effect from mid-December. Once a valid claim is filed and verified by DTB and KCB, a response will be provided within three business days and a payment made if the claim is approved.
See also: Two things Imperial Bank must do to reopen
Nasim Devji CEO DTB Group said: “DTB will work together with the affected customers to gather, verify and validate their details for the purpose of making the disbursement seamlessly. We are determined to see how best to secure their businesses with minimal disruptions in service and enable them to conduct their usual banking transactions at any of its branches across the region.”
For his part, KCB Group CEO Joshua Oigara said: “We salute the CBK for guiding the process and having confidence in DTB and KCB to serve fellow Kenyans in this process. As the disbursing agents, we are standing with Kenyans affected and we will work round the clock to ensure that the process is seamless so that customers can access their funds before the Christmas period.”
Under the agreement, DTB and KCB will pay each Imperial Bank depositor up to a maximum of Ksh1 million, subject to account and identity verifications. On this basis, 44,300 depositors are expected to get full access to their deposits, while the remaining 5,700 depositors would in this instance be paid a portion (Ksh1 million) of their deposits.
The remaining deposits and loans would be subject to a comprehensive financial and legal due diligence review by DTB and KCB, which would inform what portions if any could be transferred to DTB and KCB and under what terms and conditions. An announcement on the way forward will be made upon completion of this exercise, expected by end-March 2016, and it would include the treatment of current bond investors.
CBK appointed KDIC as receiver for Imperial Bank on October 13, 2015, according to the provisions of the Banking Act and of the Kenya Deposit Insurance Act.
Next Read: How a CEO lead robbery on Imperial Bank
