Customers with money held at Imperial Bank will have to wait at least four years before receiving their money in full.
This follows a new offer by KCB Group, which is set to acquire the ailing lender’s assets, to clear deposits held in Imperial Bank.
“In letters dated March 29 and April 2, 2019, KCB communicated to Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation, a modification of the terms of the binding offer with respect to the completion of the verification of loan process,” said CBK in a statement.
Imperial Bank collapsed in 2015 with over Sh80 billion belonging to 49,900 depositors. The regulator said the accepted final offer includes a further recovery of 19.7 per cent of eligible depositor balances remaining at Imperial Bank, following an earlier release of 35 per cent of original deposits held at the date of receivership made in December last year.
The remaining 12.5 per cent balances due to eligible depositors will now be paid out on completion of the agreement signing, with another 12.5 per cent paid out on the first anniversary of the signing.
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Seventy-five per cent of the remaining balance will be paid out in three equal installments on the second, third and fourth anniversaries of the signing respectively.
CBK, however, says the recovery does not include the realisation of about Sh36 billion of loans - translating to 50 per cent of the current loan balances, linked to ongoing litigation.
The agreement will also see KCB take over five Imperial Bank branches.