KCB’s breakthrough as its bid to acquire Imperial Bank is accepted

The Central Bank of Kenya and Kenya Deposit Insurance Corporation have finally accepted a Binding offer from Kenya Commercial Bank to own stakes at Imperial Bank.

A statement from the KDIC released on Tuesday evening reveals that KCB has been pushing bidding offer to the two bodies to take up IBLR, which has been under receivership.

It reads partly: “Following the announcement of the receipt of a Binding Offer from KCB dated September 27, 2018 Press Release, the Central Bank of Kenya (“CBK”) and Kenya Deposit Insurance Corporation (“KDIC”) continued to engage with KCB to enhance the value for IBLR’s depositors.”

It further indicates that KCB followed its bidding by sending letters to CBK and KICD, stating the modification of the Binding Offer in reference ‘to the release of depositors funds and verification of loan.’

To this effect, its bid has been accepted subject to completion within 14 days of the announcement.

“KDIC and CBK are pleased to announce the acceptance of the Binding Offer from KCB. The Binding Offer accepted, includes granting access to 12.7 percent of eligible depositor balances remaining at IBLR within 14 days of this announcement, subject to account and identity verifications,” declares the KDIC statement.

The Binding Offer stipulates that the KCB is expected to complete loan verification within a span of the first quarter of 2019. Both CBK and KDIC are upbeat that the process will breathe life into the withering banking institution.