KTDA seeks protection for Ksh 3b in Imperial Bank

The Kenya Tea Development Agency (KTDA) has moved to court in an effort to stop the possible liquidation of Imperial Bank.

KTDA has Ksh 2.9 billion in the bank that is currently under receivership, which it fears could be lost if the bank is liquidated.

The agency wants to be enjoined in the case against the Central Bank and the Kenya Deposit Insurance Corporation (KDIC) to protect its deposits.

In its application to the High Court, KTDA says depositors were only being offered a million shillings of their money, with no mention of how large depositors would be settled.

“In the event the decision by the Governor does not tend towards revival of the Bank currently under receivership, then the descent of the bank into liquidation is likely to scuttle the chances of the Third Interested Party (KTDA) to make a full recovery of its deposits in the Bank,” KTDA said in an affidavit filed at the High Court.

KTDA is pushing an earlier plan to have depositors convert their money into a share of the bank in an effort of having it re-opened.

Imperial Bank was placed under receivership on October 13 and plans by shareholders to re open the bank have hit a dead end with the CBK.

Shareholders had proposed to inject Ksh 10 billion into the bank, recover assets from recipients of the fraudulent money as well as bringing on board a strategic investor.