HomeNEWSBUSINESSImperial Bank Set For Liquidation

Imperial Bank Set For Liquidation

Imperial Bank Limited is set for liquidation, six years after it entered receivership in 2015. The bank was shut down after large-scale fráud was uncovered, with management and third parties siphoning funds out of the company.

In a statement issued on Thursday, December 9, The Central Bank of Kenya (CBK) confirmed receipt of a receivership report from the Kenya Deposit Insurance Corporation (KDIC) recommending that Imperial Bank be liquidated.

“The report indicates that considering the weak status of IBLIR’s financial position, liquidation is the only feasible option,” CBK stated.

Following an Expression of Interest process in 2020, Kenya Commercial Bank (KCB) acquired Imperial Bank assets valued at Ksh3.2B and liabilities of the same value.

“From June 2, 2020, IBLIR depositors were to be paid a total of Ksh3.2 billion over a period of four years. Subsequently, the depositors would have cumulatively recovered 37.3% of the deposits since 2015 when payments were commenced. Following four payment disbursements, 45,700 out of the 50,000 (92 percent) depositors have accessed their funds in full,” CBK noted.

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In September 2020, CBK asked for the appointment of an external auditor to examine Imperial Bank’s books.

CBK maintained that liquidation would offer protection to depositors, the bank’s creditors and the wider public interest. It appointed the Kenya Deposit Insurance Corporation (KDIC) as the liquidator of Imperial Bank.

KDIC will release information about liquidation of the bank and payment of depositors in due course.

Customers or anyone with claims or enquiries can reach KDIC via telephone or email.

As of 2013, Imperial Bank was the 19th largest bank in Kenya by assets. CBK cited “unsafe and unsound business conditions”  when it placed the bank under KDIC even as fráud allágations emerged.

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