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KCB To Complete Imperial Bank Takeover By March 2019

[IMAGE/ COURTESY]

[IMAGE/ COURTESY]
Kenya Commercial Bank (KCB) Group is set to complete Imperial Bank takeover by March 2019.Imperial bank went into receivership in October 2015, and its depositors have not been able to access their monies since then.

KCB thereafter won the bid for the collapsed lender in July this year and has promised to absorb some Imperial Bank branches and employees.

Mid last week, the Central Bank of Kenya and Kenya Depositors Insurance Corporation (KDIC) announced that Imperial Bank depositors will access 12.7 per cent of their balances within 14 days.

In a joint media briefing with KDIC on the 12.7 per cent offer given to Imperial Bank depositors, KCB Group chief executive Joshua Oigara said an asset verification is underway before the issuance of a comprehensive offer in 90 days.

Read: Kenya Commercial Bank Set To Take Over Defunct Imperial Bank

‘’We are currently looking at Imperial Bank’s loan book that stands at Ksh35 billion and other assets including branches. Imperial Bank should expect a comprehensive offer from us in March,’’ Ogaira said.

Imperial bank depositors with KCB accounts will receive the 12.7 per cent offer which adds up to Ksh8 billion by December 24, according to KDIC chief executive Mohamud Ahmed.

“Already Ksh100 million has been accredited to depositors’ KCB accounts. We expect to disburse the remaining balance by Christmas Eve. This will see 95 per cent of Imperial bank depositors fully covered,’’ Mohamud said.

Imperial Bank depositors and invited claimants will be required to open accounts with KCB to get their share.

“Depositors who will be claiming their funds for the first time through KCB Bank are required to open an account with any of the KCB Bank branches and shall complete a claim form with the assistance of the bank officials who will forward the same to IBL for processing,” Kenya Deposit Insurance Corporation (KDIC) said yesterday.

Depositors’ funds have been locked since the bank was put under receivership in October 2015 after it was found to be operating two sets of books, with a potential fraud of Ksh44.9 billion.

Shareholders were accused of irregularly paying themselves Ksh2.7 billion as dividends.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE.

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