KCB Bank Kenya has placed a binding over to purchase Imperial Bank (In Receivership). The Central Bank of Kenya (CBK) and the Kenya Deposit Insurance Corporation (KDIC) announced on Tuesday that that KCB made the offer on September 27 as part of the Expression of Interest (EOI) process announced on October 13 last year.
“Following receipt and assessment of KBC’s non-binding proposal, CBK and KDIC engaged KCB in discussions aimed at maximising the value for depositors. CBK and KDIC will provide further details to stakeholders as soon as the binding offer is fully assessed. In particular, a meeting with stakeholders will be called shortly,” CBK and KDIC said in a statement.
The news, however, did not assuage the anxiety and suffering of depositors, who have been seeking to get access to their money for nearly three years, after the two revealed that they had entered consent with Kenya Tea Development Authority on September 28 in a case it had filed in the High Court and the order was adopted maintaining the status quo (i.e continuation of IBLR’s receivership) until the case is heard and determined. KTDA is one of the depositors whose money is held up in the bank. Its account had Group deposits of Ksh 2.93 billion.
“The case will be mentioned on January 15, 2019. CBK and KDIC expects that this Order provides sufficient time to conclude the matter of KCB’s binding offer. CBK and KDIC reiterate their commitment in keeping with their respective mandates and in accordance with the Laws of Kenya, to protect the interests of depositors, creditors, and the wider public interest,” the statement said.
Depositors, however, took to social media to protest being ambushed by news of the KTDA consent with some accusing CBK Governor Patrick Njoroge of favouring the interests of only one creditor.
“Kenya Tea Development Authority had filed this application the 30th of July 2018 seeking for the extension before it collapses and was given end of September and followed by this ruling. The 70 day extension ruling was given through another court after the KTDA application was deferred so this is a continuation of their original application then,” an admin of the IBL Depositors Lobby Group Facebook Page posted after the announcement.
“However it is understood that Kenya Tea Development Authority must get concurrence from Other IBL Depositors, IBL Shareholders and Central Bank of Kenya (Official). We are in touch with the Kenya Deposit Insurance Corporation who have informed us that the extension is on course as per the 70 days expiry next week and no comment on this new development,” it added leading to angry reactions from members.
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Among the biggest depositors whose money Imperial Bank went down with is Mombasa tycoon Ashok L Doshi, who had nearly Ksh 1 billion in his account. He learnt of the news while in a London hospital receiving cancer treatment.
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