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Large depositors at Imperial Bank to access their ...

Large depositors at Imperial Bank to access their money

The Kenya Deposit Insurance Corporation (KDIC) has announced plans to allow large depositors at the embattled Imperial Bank access up to 10 per cent of their balances.

In a statement to newsrooms, the Central Bank of Kenya (CBK) said that verified depositors will get their money through the NIC Bank.

“Verified depositors will be able to access additional funds of up to a maximum of 10 per cent of their remaining deposits, subject to a minimum of Sh. 200,000 or the actual deposit amount for balances below Sh. 200,000,” said Central Bank of Kenya (CBK) in a statement.

This is the third time depositors will be accessing their money after the first phase that saw over 40,000 customers with less than Sh1 million get full accesses to their savings via KCB and DTB

In the second phase, depositors were able to access up to Sh1.5 million through the two banks.

This is a huge relief to depositors who have suffered a huge economic stress after the bank was closed in October last year following discovery of massive fraud, which at the time held Sh58 billion in customer deposits.

According to NIC Managing Director John Gachora, the bank has so far disbursed about Sh3 billion and opined at least 5,000 claim accounts since July.

In October this year, the CBK extended the receivership period of Imperial Bank for another six months to allow the Kenya Insurance Deposit Corporation to advice on the best  resolution strategy.

US forensic auditor FTI Consulting and Banking Fraud Investigations Department of the Kenya Police have been leading investigations to unearth those behind the alleged 13-year loot from around year 2003 – arguably the country’s largest financial scam ever.

The CBK and KDIC appointed NIC to steer the refund process, with the ultimate goal of taking over some deposits, assets and liabilities of Imperial Bank.


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