Central Bank puts Imperial Bank under receivership.

Central Bank puts Imperial Bank under receivership.

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Panic gripped Imperial Bank Ltd depositors and creditors across the country on Tuesday after Central Bank of Kenya put the bank under new management due to what the CBK termed as “unsafe or unsound business conditions”

In Mombasa, a number of the bank customers reportedly rushed to their branches to seek for further clarifications only to find closed doors with with notices urging them to remain patience  as the bank sorted out “a technical hitch in the branches.”

CBK announced early Tuesday it was putting the privately owned bank under management for 12 months, “in the interests of depositors, creditors and general public”.

The Central Bank said in a statement sent to newsrooms that it had appointed the state’s Kenya Deposit Insurance Corporation (KDIC) to take over management of the Imperial Bank “in the interest of its depositors, creditors and members of the public”.

“The Central Bank has today, Tuesday, 13th October , 2015 appointed the Kenya Deposit Insurance Corporation (KDIC), to assume management and control of Imperial Bank Ltd for a period of Twelve months in pursuit to the provision of section 32 (2) b of the Banking Act….”says CBK.

Imperial Bank becomes the second bank in Kenya to be put under management since August, when Dubai Bank Kenya Ltd, was put into receivership after facing liquidity problems.