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KCB to Pay KSh3.2B for Imperial Bank Assets and Liabilities

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KCB Group has completed the acquisition of some assets and liabilities of Imperial Bank (Kenya) limited valued at KSh3.2 billion.

Central Bank of Kenya approved the deal on May 4 and the Cabinet Secretary for Treasury and Planning gave the green light on May 14, 2020.

KCB will from June 2, 2020 pay Imperial Bank depositors a total of KSh3.2 billion over the next four years. Subsequently, depositors will have cumulatively recovered 37.3 percent of the deposits since 2015 when payments commenced.

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Imperial Bank was placed under receivership in October 2015 following inappropriate banking practices.

The KSh3.2 billion value is a revision downwards from the initial KSh10 billion worth of loans that KCB had identified for a takeover before cutting the target to KSh5 billion. Furthermore, KCB emphasizes that this is an asset transfer deal rather than an equity acquisition.

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