The Kenya Deposit Insurance Corporation (KDIC) has issued a notice to depositors of Imperial Bank Limited on payment of protected deposits.
KDIC advised depositors to continue lodging their claims for payment of protected deposits from Imperial Bank which is in liquidation.
“The claim forms are available from KDIC website www.kdic.go.ke,” read part of the notice.
The agency has urged depositors to complete the forms and return them to Imperial bank office situated at Old Mutual Towers, 25th floor in Upper hill Nairobi.
Alternatively, the forms can be dropped at the Central Bank of Kenya (CBK) branches in Eldoret and Nakuru.
“Duly completed forms with attachments as listed on the forms should be returned as soon as possible to the above locations to facilitate payment,” said KDIC.
Claimants were further advised to note that the payment is valid for a period of two years from April 3, 2023.
“For all approved claims, payments will be processed through Real time Gross Settlement (RTGS) direct to the claimants bank account,” added KDIC.
KDIC Starts Payment
In April 2023 KDIC announced the commencement of payment of protected deposits to depositors of the bank after CBK approved its liquidation in 2021.
This was to allow the remaining depositors to submit proof of debt for validation and payment.
Kenya Commercial Bank (KCB) tabled Ksh3.2 billion deal to acquire Imperial Bank’s assets and liabilities.
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As of 2021, 45,700 depositors, or 92%, had been paid in full.
However, around 4,300 depositors, making up eight percent of Imperial Bank depositors, were yet to get their money back in full.
CBK appointed KDIC to liquidate Imperial Bank and facilitate payments for the remaining depositors, creditors, and bondholders.
Imperial Bank Receivership
Similarly, the Bank was put under receivership in October 2015 due to inappropriate banking practices.
It collapsed under the weight of massive fraud, with CBK stating that high-level managers and administrators had made illegal transactions which cost the bank Ksh34 billion.
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A forensic audit report ordered by the CBK highlighted fraudulent loans issued by Imperial Bank and the misrepresentation of its financial statements.
Imperial Bank was established in 1992 as a Finance and Securities Company. Further, in 1996, the bank commenced commercial banking services, following the issuance of a banking license by CBK.
