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Depositors of collapsed lender, Imperial Bank will get access to 7.5 per cent of their outstanding deposits, estimated at Sh53 billion, according to Kenya Deposit Insurance Corporation (KDIC) Chief executive Mohamud Ahmed Mohamud.
The State agency further said that depositors of Imperial Bank, which is under receivership, however, might have to wait for at least four years before receiving their money in full. This is after a new offer by the KCB Group, which is set to acquire the ailing lender’s assets, to clear deposits held in Imperial Bank.
As part of stemming bank failures in the country, Mr Mohamud said, they will soon ask banks will do a resolution plan, explaining what they will do in case of failure to streamline the process of paying depositors.
KCB had in April requested a modification of its binding offer last month after completing the verification of Imperial Bank loan book estimated at Ksh70 billion ($700 million).
As part of the buyout plan KCB will take over five (5) branches of IBLR, while CBK and KDIC would have to explore options for the remaining 22 branches and staff.
Imperial Bank went into receivership in October 2015, collapsing with an estimated Ksh85 billion ($844.3million) belonging to 50,000 depositors.
KCB won the bid to take over the troubled lender in July last year (2018) and promised to absorb some Imperial Bank branches and employees.