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Imperial Bank Depositors Asked to Open New KCB Accounts to Receive Payments

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Imperial Bank Limited (in Receivership) depositors will have to open an account with KCB Bank to receive 12.7 per cent of the available deposit balances.

In a statement, Kenya Deposit Insurance Company said those depositors who have claimed in the past through KCB and still have their accounts active will not be required to fill any claim form and their available funds will be directly credited into their respective KCB Bank accounts.

“However, this group of depositors still needs to counter check their account status with their respective KCB branches,” read the notice from KDIC.

In a letter dated 7 December 2018, KCB submitted a modified Binding Offer to KDIC and Central Bank of Kenya, paving way for the release of the depositor’s money.

The Binding Offer accepted includes granting access to 12.7 percent of eligible depositor balances remaining at IBLR within two weeks, subject to account and identity verifications. Combining this with earlier disbursements will result in a total recovery of approximately 35 percent of original eligible deposits held at the date of receivership.

It also states that KCB will complete the loan verification process within the first quarter of 2019. This is expected to complete the payments to the remaining IBLR depositors.

“CBK and KDIC assess that KCB’s Binding Offer represents a viable proposal for the resolution of IBLR, for the benefits of the depositors and the strengthening of the Kenyan financial sector,” said KDIC and CBK in a joint statement last week.

IBLR went into receivership on October 13, 2015 due to loss of over Ksh34 billion related to fraud.

At the time, it held KSh58 billion in customer deposits and had 52,398 deposit accounts.

 

RELATED;Imperial Bank Depositors to Start Receiving Their Money in Two Weeks

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