KCB Commence Funds Payment To Remaining Imperial Bank (IR) Depositors

KCB Group CEO Joshua Oigara
KCB Group CEO Joshua Oigara 

KCB Bank Kenya Limited has commenced payment of funds to remaining eligible depositors of Imperial Bank Limited (in receivership) (IBLIR) in the current tranche of disbursements.

The exercise which kicked off yesterday will see the depositors approved by the receiver manager Kenya Deposit Insurance Corporation (KDIC) get partial access to their bank balances.

On May 22, 2020, the Central Bank of Kenya (CBK) announced the acquisition of assets valued at Ksh.3.2 billion and assumption of liabilities of the same value of IBLIR by KCB Bank effective June 2, 2020.

Effectively, IBLIR depositors will be paid a total of Ksh.3.2 billion (equivalent to the total assets acquired by KCB) over a period of four years. To date 93% of eligible depositors have been fully paid. This is the first payment as scheduled under the transaction—a part asset transfer—that commenced in 2019.

The payments to eligible depositors were to be made as follows; 12.5 percent on completion of signing of the agreement; 12.5 percent on the first anniversary of the signing; and 25 percent 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 support 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.

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