KDIC begins paying protected depositors of the fallen Imperial Bank
The Kenya Deposit Insurance Corporation (KDIC) has announced that it will commence payments to protected depositors of the fallen Imperial bank, almost eight years after its collapse.
In a public notice, KDIC said depositors will be required to fill out an online form before receiving their deposits.
"Notice is hereby given that the Kenya Deposit Insurance Corporation, in exercise of the powers conferred under Section 33 of the Kenya Deposit Insurance Act, 2012, will commence payment of protected deposits to depositors of Imperial Bank Limited (In Liquidation). To receive the payments, depositors of Imperial Bank Limited [In Liquidation] are therefore advised to download the claim forms from KDIC website, fill and return duly completed forms with attachments to Imperial Bank Limited (In Liquidation) branches at IPS Building, Nairobi and Kaunda Street, Mombasa (or) Central Bank of Kenya branches in Eldoret and Nakuru," the notice read in part.
The payments are valid for a period of two years from Monday, April 3, 2023.
The Central Bank of Kenya (CBK) appointed KDIC as the receiver of the bank on October 13, 2015.
Also, KDIC has asked creditors of the bank to start loading proofs of debt for validation.
"Notice is hereby given that persons having claims against Imperial Bank Ltd (In Liquidation) are required to lodge their proof of debt for validation. Creditors of Imperial Bank Limited (In Liquidation) are therefore advised to download the proof of debt form from KDIC website, complete and return the forms, attaching documents to support the claim, to Imperial Bank Limited (In Liquidation) branches at IPS Building, Nairobi and Kaunda Street, Mombasa," added KDIC in a separate notice.
Imperial Bank acquisition by KCB
On June 2, 2020, KCB Bank Kenya (KCB) acquired certain assets valued at Ksh3.2 billion and assumed liabilities of the same value of the lender. Depositors were to be paid a total of Ksh3.2 billion over a period of four years.
In September 2020, following the acquisition of certain assets and the assumption of liabilities by KCB, CBK required KDIC to appoint an independent external auditor, to carry out a comprehensive audit of the bank, based on terms of reference approved by CBK. The objectives of the audit were, among others, to provide an additional basis for further action.
On December 7, 2021, KDIC submitted the Receivership Report to CBK recommending that Imperial Bank be liquidated. The report indicated that considering the weak status of Imperial Bank’s financial position, liquidation is the only feasible option.
