The High Court on Monday issued an order extending receivership at collapsed Imperial Bank by a further three months to allow Kenya Deposit Insurance Corporation (KDIC)to be accorded more time to resolve the receivership.
This is the second time the court is granting the request. The last extension of the receivership on March 24, 2017.
According to the Central Bank of Kenya statement, the current extension was as a result of an agreement between the parties, “This was following agreement between the shareholders, Kenya Deposit Insurance Corporation (KDIC) and Central Bank of Kenya (CBK), that it was necessary for KDIC to be accorded more time to resolve the receivership. The consent given by these parties was without prejudice and unconditional.”
The Central Bank of Kenya placed IBL under receivership on October 13, 2015 due to financial irregularities and malpractices that dogged the bank exposing its customers to risk of loss.
“CBK consented to today’s (Tuesday) extension on the basis that more time is needed for further actions that would allow a fitting resolution of IBLR’s receivership. Additionally, in order to advance the resolution of the receivership and in keeping with their respective mandates, CBK and KDIC will in the coming days issue a tentative timeline and prospective milestones for the resolution of IBLR’s receivership.”