KCB Bank Pays Out Funds to Imperial Bank (IR) Depositors

Kevin Namunwa | Sep 4, 2020

KCB Bank Kenya Limited has commenced payment of funds to remaining eligible depositors of Imperial Bank Limited (in receivership) (IBLIR) in the current tranche of disbursements.

The exercise which kicked off yesterday will see the depositors approved by the receiver-manager Kenya Deposit Insurance Corporation (KDIC) get partial access to their bank balances.

On May 22, 2020, the Central Bank of Kenya (CBK) announced the acquisition of assets valued at Ksh.3.2 billion and assumption of liabilities of the same value of IBLIR by KCB Bank effective June 2, 2020.

Effectively, Imperial Bank depositors will be paid a total of Ksh.3.2 billion over a period of four years.

This means that the depositors will have cumulatively recovered 37.3% of the deposits since 2015 when payments commenced. Under the transaction—a part asset transfer—that commenced in 2019, the balances due to eligible depositors were to be paid out as follows; 12.5 percent on completion of signing of the agreement; 12.5% on the first anniversary of the signing; and 25% each on the second, third and fourth anniversaries respectively.

“This is significant progress in our efforts to ensure that Imperial Bank depositors receive their long-awaited dues. We remain committed to support the recovery of funds and we are optimistic that these efforts will be a success in the fullness of time,” said KCB Group CEO and MD.

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