NIC takes over five Imperial Bank branches to facilitate payments

NIC Bank is set to take over and re-open five Imperial Bank branches across the country as it prepares to process payments to depositors.

The move comes after the high court on Tuesday lifted an order blocking payments after a Mombasa businessman challenged the move.

The Kenya Deposit Insurance Corporation in June appointed NIC Bank as the assets and liabilities consultant for Imperial Bank. Through the move NIC is expected to process deposit payments, recover loans as well as acquire part of the collapsed bank’s assets.

The five branches to be reopened are in Parklands Nairobi, Diani, Kilifi, Malindi and Watamu.

Already, NIC Bank has assumed control of Imperial Bank depositors’ accounts to facilitate the payments.

“We understand that it has been a difficult period for IBLIR depositors and we have put in place measures to ensure the process for depositors to access their funds is as fast as possible.  It is for this reason that depositors have already been set up at NIC Bank using their Imperial Bank account numbers,” NIC Bank Chief Executive John Gachora said.

Imperial Bank customers will be able to access Sh1.5 million of their funds. This is in addition to the Sh1 million customers accessed in December through KCB and DTB. NIC Bank will also process payments for those who had not yet drawn the initial Sh1 million allocation.

The Central Bank of Kenya is yet to give its decision on Imperial Bank after it placed the bank under receivership in October 2015 over a Sh34 billion fraud scheme. The banking regulator was expected to give the way forward for the bank at the end of June but has since gone quiet on its revival plans.