IBL depositors to access Sh1.5m as NIC appointed assets manager

The Kenya Deposit Insurance Corporation has entered into an agreement with NIC Bank that will see depositors at Imperial Bank access up to Sh1.5 million.

NIC has been appointed as the assets and liabilities consultant for Imperial Bank, charged with disposing of the bank’s assets and liabilities.

According Central Bank of Kenya (CBK) Governor Dr Patrick Njoroge, the move will benefit 45,700 depositors at Imperial Bank or 92 percent of depositors.

The payments will be made once the High Court ruling on the suspension of payments is made on July 4.

“Subject to a due diligence and contract review, and following negotiations, KDIC will dispose of, and NIC will assume, a portion of the remaining verified deposits along with certain other assets and liabilities,” Dr Njoroge said.

As the assets and liabilities consultant, NIC will take over a portion of Imperial’s deposits along with certain assets and liabilities allowing payments of higher amounts to be made.

“It is expected that depositors will be granted access in a structured manner to about 40 percent of the remaining amount of verified deposits above Sh2.5 million, which would bring the cumulative pay-out ratio for all verified deposits to an estimated 59 percent,” he said.

Through the deal, NIC will also assume the majority of Imperial Bank staff and branches.

This could mark the beginning of the end for Imperial Bank with the Central Bank expected to give its final decision on the bank’s fate later this month.

Imperial Bank was placed under receivership in October 2015, after the discovery of a Sh34 billion fraud scheme orchestrated by former Managing Director Abdulmalek Jamohamed.

In December the central bank of Kenya entered into an agreement with KCB Bank and DTB Bank that saw depositors with less than Sh100,000  paid.

More to follow…