The Central Bank of Kenya (CBK) has supported the move by Bank of Uganda to sell of all the shares of Imperial Bank Limited to Exim Bank (Uganda) Limited.
CBK placed Imperial Bank Limited under receivership of the Kenya Deposit Insurance Corporation (KDIC) from October 13, 2015. It noted that since that time, it been working closely with BOU on an appropriate solution to these shares.
CBK is very supportive of BOU’s actions, exercising its statutory powers as the regulator in that jurisdiction and seeking an outcome that does not jeopardize financial sector stability, said a statement from the bank.
These shares in Imperial Bank (Uganda) Limited were sold to Exim Bank(Uganda) Limited for the sum of US$6.788 million in an effort to quickly recover funds for the benefit of all IBL depositors. Net of interbank deposits and other transaction costs, the amount due to KDIC is US$3.685 million.
The bank said that it will continue to work with all concerned parties towards an expeditious solution for Imperial Bank. In particular, it noted that the work by forensic auditors and other investigative agencies is ongoing, with the objective of protecting the interests of IBL depositors, facilitating the quick recovery of funds and protecting the financial sector.