Mombasa businessman sues Central bank and Imperial bank over receivership

Mombasa businessman sues Central bank and Imperial bank over receivership

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Imperial Bank Limited customers outside the Mombasa Imperial bank branch after they were denied access to services on October 13, 2015. PHOTO: COURTESY.

Mombasa, KENYA: A business man on Tuesday sued  Central Bank of Kenya and Imperial Bank in a Mombasa high court; citing loss of a billion shillings.

Ashok Doshi alleges to have deposited one billion  shillings in Imperial bank before the bank was placed under receivership in October 2015.

Through his lawyer Mr.Francis Kadima, Doshi challenged the Central Bank for the placement of Kenya banks under receivership and not paying depositors their money.

Kadima said it was unlawful for the bank to pay his client one million shillings per month, adding that the law restricts them to pay whole amount within six months which still hasn’t been fulfilled.

He said majority of Kenyans have lost faith in financial institutions over increased placement of banks under receivership and asked the government to come up with proper systems of managing financial institutions.

“We are not fighting Central bank, we only want things to be done according to the law” he said.

READ ALSO:  All you need to know about your money in case your bank is put under Receivership

Kadima says his client has been suffering from different complications since the bank was placed under receivership losing his life servings.

Imperial Bank was placed under receivership by CBK on 13 October 2015, following revelations of unsafe business practices.

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