The Kenya Deposit Insurance Corporation (KDIC) has issued a final notice to Ari Bank Corporation Limited creditors as it moves to wind up the long-running liquidation of the collapsed lender, nearly 28 years after the bank was placed under receivership.
In a gazette notice dated May 15, KDIC, acting as the liquidator of Ari Bank, said it intends to seek from the High Court an order terminating the liquidation and formally winding up the affairs of the defunct institution.
Ari Bank Liquidation Nears End After 28 Years
Creditors and contributories have been invited to inspect the final statement of accounts and raise any objections within 30 days from the date of the notice.
“Take notice that in accordance with section 60 of the Kenya Deposit Insurance Act Chapter 487C of the Laws of Kenya, I, the undersigned Liquidator of the above-mentioned company Ari Bank Corporation Ltd (in Liquidation), intend to apply to the High Court for an order to terminate the liquidation and to wind-up Ari Bank Corporation Ltd,” read the notice in part.
“You are hereby required to inspect the final statement of account in respect of Ari Bank Corporation Ltd (in liquidation) and further take notice that any objection you may have on the accounts must be notified to the Liquidator within 30 days of the date hereof.”
A summary of all receipts and payments in the winding-up process is available for inspection at the KDIC offices located at Old Mutual Towers, 16th Floor.
The inspection will be conducted on Wednesday, May 20, 2026, and Thursday, May 21, 2026, during working hours from 8:00 a.m. to 5:00 p.m.
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Ari Bank Liquidation Records Ksh570.9 Million Assets
According to the statement of accounts, the liquidation has involved extensive recoveries and payments over the years, including proceeds from treasury bills, loans and advances, placements with financial institutions, and investment income.
KDIC reports total assets and receipts of approximately Ksh570.9 million as at December 31, 2025, against total liabilities of about Ksh309 million, leaving net assets of Ksh261.9 million.
However, the accounts indicate that assets valued at over Ksh549 million were deemed unrecoverable and written off during the course of the liquidation.
The report further shows payments made to protected depositors, creditors, legal fees, audit costs, salaries, and other liquidation-related expenses. Unclaimed dividends and other balances have also been transferred to the Company’s Liquidation Account.
Preferential creditors, including service providers such as legal, audit, and advertising firms, are listed in the final statement of accounts pending closure of the process.
An independent audit confirmed that the financial statements present a fair view of the liquidation of Ari Bank Corporation Ltd for the period under review.
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This comes after the Corporation issued a notice of intention to make the third and final payment to depositors and creditors of Ari Bank Ltd. in December last year.
In the notice, KDIC said it intended to declare a third and final liquidation payment to all eligible depositors and creditors, in line with Section 57 of the Kenya Deposit Insurance Act (Cap. 487C).
KDIC directed all depositors and creditors to file their claims by January 15, 2026, to facilitate reimbursement of deposits and other claims.
It warned that those who failed to lodge their claims within the stipulated period would be excluded from the payment process.
