Imperial Bank depositors start receiving cash from KCB Group

KCB Group CEO Joshua Oigara (PHOTO: FILE)

NAIROBI, KENYA: KCB Group has begun payments to remaining eligible depositors of Imperial Bank which is in receivership.

The disbursements valued at Sh3.2 billion are being paid in tranches over four years and target depositors approved by the Kenya Deposit Insurance Corporation (KDIC) -- the receiver-manager -- get partial access to their bank balances.

Depositors will have cumulatively recovered 37.3 per cent of the deposits since 2015 when payments commenced, KCB said.

In May, the Central Bank of Kenya (CBK) announced the acquisition of assets valued at Sh3.2 billion and the assumption of liabilities of the same value of Imperial Bank by KCB Bank effective June.

Under the transaction that commenced in 2019, the balances due to eligible depositors were to be paid out as follows; 12.5 per cent on completion of the signing of the agreement; 12.5 per cent on the first anniversary of the signing; and 25 per cent each on the second, third and fourth anniversaries respectively.

“This is significant progress in our efforts to ensure that Imperial Bank depositors receive their long-awaited dues. We remain committed to supporting the recovery of funds and we are optimistic that these efforts will be a success in the fullness of time,” said KCB Group CEO and MD Joshua Oigara.