It is now official that Imperial Bank is no more. The bank that collapsed in 2015 had been in an economic morgue with those who had invested in it hoping that it will be resuscitated. But the CBK just announced its funeral.
On Thursday, the Kenya Deposit Insurance Corporation (KDIC) and the Central Bank On Kenya said the remainder of Imperial Bank will be liquidated. KDIC’s Receivership Report to CBK recommended that IBLIR be liquidated.
The report indicates that considering the weak status of IBLIR’s financial position, liquidation was the only feasible option. “Liquidation would facilitate the orderly resolution of IBLIR…, to protect the interest of IBLIR depositors, its creditors, and the wider public interest.”
Imperial Bank was placed under receivership on October 13, 2015, due to inappropriate banking practices and the Kenya Deposit Insurance Corporation (KDIC) was appointed by CBK as the receiver.
CBK says from June 2, 2020, the lender’s depositors were to be paid a total of Ksh.3.2 billion over a period of four years. Subsequently, the depositors would have cumulatively recovered 37.3 percent 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. KDIC (Kenya Deposit Insurance Corporation) will release information about the liquidation … and payment of depositors in due course.”