Central Bank and Capital Markets Authority (CMA) have jointly directed Nairobi Stock Exchange to suspend the introduction to listing and trading of Corporate Bond issued by Imperial Bank which closed on September 17, 201
The directive followed Central Bank’s earlier decision to put the Imperial Banks under the management of the state owned Kenya deposit insurance corporation KDIC.
“The board of directors of Imperial Bank Limited brought to the attention of the CBK inappropriate banking practices that warranted immediate remedial action in order to safeguard the interest of both depositors and creditors” says a joint statement signed by CBK Governor Dr. Patrick Njoroge and CMA Ag Chief Executive Officer Mr. Paul Muthaura.
They said the appointment of KDIC to take control of the management of the bank was intended to provide a platform for KDIC to execute its statutory mandate with the support of the board of directors of Imperial Bank Limited towards restoring the safety and soundness of the bank.
”CMA will be working closely with the Board of Imperial Bank and KDIC to ensure all material information is made available to investors to ensure the maintenance of the transparency and orderliness of the capital markets” the statement concluded.