The Central Bank of Kenya (CBK) has approved acquisition of Imperial Bank assets worth Ksh3.2 billion by Kenya Commercial Bank (KCB).
This comes a month after KCB cut the portion of the loan book it intends to take over from the collapsed Imperial Bank to Ksh3.5 billion.
KCB’s initial review had identified Ksh10 billion loans for takeover before cutting the target to Ksh5 billion and now Ksh3.5 billion.
KCB maintained it will buy loans that have enough collateral.
“Remember we were not doing an equity acquisition; we were doing an asset transfer so we did our due diligence, identified the assets we want to take over and the documentation is already signed and we are in the process of just moving that into KCB,” said KCB chief finance officer Lawrence Kimathi in March.
Imperial Bank went under in October 2015 and CBK placed it under the management and control of the KDIC over what it termed as unsound business practices.