Depositors of Imperial Bank to start getting money back

Kenya's central bank said on Wednesday almost 90 percent of depositors in Imperial Bank (IBL), which was taken into receivership in October because of fraud, would get their money back in full, with payments starting in a few weeks.

The depositors will access their cash via KCB Group and Diamond Trust Bank after the state-owned receiver reached a deal with the two institutions to process payments.

"This follows the failure of IBL's shareholders to provide adequate assurances to implement a proposal that would enable the prompt reopening of IBL and resumption of normal activities for its customers," central bank governor Patrick Njoroge told a news conference.

He said the liquidation of IBL was still an option.

Valid deposit claims could start being paid "in the next few weeks," Njoroge said, adding 44,300 depositors "will get full access to their deposits ... Thus, 89 percent of depositors will be paid in full."

The remaining 5,700 depositors, who each had more than 1 million shillings ($9,800) with the bank, would receive a maximum of 1 million shillings at this stage, while more could be paid later, the governor said.