Imperial Bank customers to access cash next week


Imperial Bank
Imperial Bank

Imperial Bank depositors can breathe a sigh of relief after the High Court lifted an order barring disbursement of funds.

The depositors will now be able to access up to Sh1.5 million of the funds held in the bank after the Kenya Deposit Insurance Corporation (KDIC) signed a deal with NIC Bank to facilitate the payments. This will be an extra amount customers will be able to draw after payments of Sh1 million were made through KCB Group and DTB in December.

NIC is expected to start making the payments from Tuesday July 26.

Mombasa based billionaire Ashok Dohsi had moved to court to block the payments claiming he had Sh1 billion stuck in the bank, seeking assurance that he could get access to his money.

Depositors will need to complete the KDIC/NIC Bank claim forms, which will be available online at the KDIC and NIC websites, from Thursday July 21 and at any NIC Bank branch and select imperial Bank branches.

According to KDIC, any new claims, including those relating to the initial Sh1 million payout through KCB and DTB, will be processed through NIC Bank.

The lifting of the order also puts in motion plans by KDIC sell part of Imperial Bank’s assets.

NIC Bank was appointed as the assets and liabilities consultants to assist in the loan recovery process. Through the deal NIC is also expected to acquire a portion of the collapsed bank’s assets.

Imperial Bank shareholders have previously challenged the move arguing it amounted to liquidation of the bank, something the Central Bank has denied. The bank’s owners have also queried why the regulator has not involved them in efforts to revive the bank.

The CBK is however yet to release findings of its forensic audit into the Sh34 billion fraud at the bank. A preliminary report on the forensic audit being conducted by FTI Consulting is shows the regulator is interested in 700 suspicious accounts and 22,520 doubtful.

Imperial Bank was placed under receivership in October 2015 after directors of the bank drew the central bank’s attention to possible siphoning of funds at the bank.

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Story By Patrick Igunza
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