KCB Bank on Friday started paying the remaining eligible depositors of Imperial Bank, which is in receivership.
Depositors approved by the receiver manager, Kenya Deposit Insurance Corporation will get partial access to their bank balances.
Central Bank of Kenya announced on May 22, 2020 the acquisition of Imperial Bank assets valued at Sh3.2 billion and assumption of liabilities by KCB effective June 2, 2020.
The depositors will be paid Sh3.2 billion over a period of four years. This means they will have cumulatively recovered 37.3 per cent of their deposits since 2015 when payments commenced.
Under the transaction - a part asset transfer - that commenced last year, 12.5 per cent of the balances due was to be paid on signing of the agreement while a similar tranche was to be paid on the first anniversary of the signing.
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Twenty-five per cent each was to be paid on the second, third and fourth anniversaries.
“This is significant progress in our efforts to ensure that Imperial Bank depositors receive their long-awaited dues,” said KCB Group Managing Director Joshua Oigara.
“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.