Imperial bank customers to access up to Sh1.5 million of their deposits

Imperial bank customers to access up to Sh1.5 million of their deposits

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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.

Nairobi, KENYA: Account holders of Imperial Bank Limited IBL will be able to access up to sh 1.5 million of their deposits.

The Central Bank of Kenya, the Kenya Deposit Insurance Corporation KDIC have jointly agreed with NIC Bank that depositors of IBL will have access to a portion of their deposits in a structured manner.

According to Central Bank Governor Dr. Patrick Njoroge this would be possible after a High Court ruling on suspension of payment on July 4, 2016.

“NIC will disburse on behalf of KDIC a maximum of sh. 1.5 million each to the remaining IBL depositors as soon as the High Court’s suspension of payments to IBL depositors is lifted. This step was taken to safeguard interest of IBL’s depositors and creditors and in the wider public interest,” said Dr. Njoroge.

Njoroge on Teusday said the agreement comes after IBL shareholders failed to provide adequate assurances to implement a proposal that would enable its prompt reopening and resumption of normal activities for its customers.

NIC has been appointed to act as the Asset and Liabilities Consultant for IBL.

“The recovery of IBL Loans will continue which will allow access to additional resources by depositors and other stakeholders,’” explained Dr. Njoroge.