BUSINESSECONOMY

8 Years Later, Imperial Bank Depositors Get Their Money Back

Share
In a forensic audit report ordered by the CBK, the regulator had highlighted fraudulent loans issued by Imperial Bank and the misrepresentation of its financial statements.
In a forensic audit report ordered by the CBK, the regulator had highlighted fraudulent loans issued by Imperial Bank and the misrepresentation of its financial statements.
Share

The Kenya Deposit Insurance Corporation (KDIC) has announced the commencement of payment of protected deposits to depositors of Imperial Bank, eight years after the lender collapsed.

The Central Bank of Kenya (CBK) had approved the bank’s liquidation in 2021, after  Kenya Commercial Bank (KCB) struck a Ksh3.2 billion deal to acquire Imperial Bank’s assets and liabilities. Most of the cash was used to pay depositors. As of 2021, around 4,300 depositors, or eight percent of Imperial Bank depositors, were yet to get their money back in full. 45,700 depositors, or 92%, had been paid in full.

The commencement of the KDIC process will enable the remaining depositors to submit proof of debt for validation and payment. The payment is valid for a two-year period from the date of the notice – April 3, 2023.

READ>Kenyan Boxer Daniel Wanyonyi Inks Sponsorship Deal Ahead Of Madonga Fight

KDIC advised: “To receive the payments, depositors of Imperial Bank Limited (in liquidation) are advised to download the claim forms from the KDIC website: www(dot)kcid(dot)go(dot)ke, fill and return duly completed forms with attachments to:

  1. Imperial Bank Limited (in liquidation) branches at IPS building, Nairobi and Kaunda Street, Mombasa
  2. Central Bank of Kenya branches in Eldoret, Mombasa and Nakuru”

KDIC had been appointed by the Central Bank to liquidate Imperial Bank and facilitate payments for the remaining depositors, creditors and bondholders.

Imperial Bank collapsed under the weight of massive fraud, with CBK stating that high-level managers and administrators had made illegal transactions which cost the bank Ksh34 billion. Imperial Bank Limited went into receivership on October 13, 2015.

In a forensic audit report ordered by the CBK, the regulator highlighted fraudulent loans issued by Imperial Bank and the misrepresentation of its financial statements.

“These activities relate largely to irregular granting of loans by IBL’s management, contrary to the legal and regulatory requirements, and the internal policies of IBL. In particular,
these irregular loans were a violation of the statutory limit of lending to a single
borrower, and inadequate loan loss provisions, thereby overstating IBL’s capital
adequacy position,” the apex bank noted.

NEXT READ>Team Europe Injects Sh50B In Nairobi Electric Bus Line

 

 

 

A

Written by
BUSINESS TODAY -

editor [at] businesstoday.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

WHAT YOU NEED TO KNOW IN POLITICS

FOLLOW US ON SOCIAL MEDIA

Related Articles
Prime Cabinet Secretary and Cabinet Secretary for Foreign & Diaspora Affairs
FEATURED STORY

Inside Kenya’s 60 Years of Diplomatic Journey

Kenya is set to commemorate 60 years of diplomacy this week starting...

Aquila East Africa
MEDIANEWS

Kenyan Communications Firm Aquila Expands into Rwanda, Uganda

Aquila East Africa, a leading Kenyan integrated communications firm has expanded into...

Live Mobile Sports Betting in Africa
SMART MONEY

The Rise of Live Mobile Sports Betting in Africa

With mobile phone penetration increasing at an unprecedented rate and internet connectivity...

BUSINESS

Bolt Invests Sh14 Billion to Tackle Most Complex Challenge in Ride-Hailing

Bolt will commit Ksh14 billion over three years to support raising awareness...