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Wednesday, August 23, 2017

Court extends Imperial Bank receivership by another 3 months

A file photo of Imperial Bank's branch in Riverside, Nairobi. /ENOS TECHE
A file photo of Imperial Bank's branch in Riverside, Nairobi. /ENOS TECHE

The High Court has yet again extended Imperial Bank's receivership by three months to allow KDIC to resolve the crisis facing the collapsed lender.

The receivership was extended by a similar margin on March 24 by the Central Bank.

CBK said in a statement on Monday that the decision followed mutual agreement with shareholders and the Kenya Deposit Insurance Corporation

"The consent given by these parties was without prejudice and unconditional," read part of the statement.

The regulator said the decision is in the best interest of depositors.

"CBK consented to today’s extension on the basis that more time is needed for further actions that would allow a fitting resolution of IBLR’s receivership."

The bank was placed under receivership on October 2015.

It was initially scheduled to end on April 13 this year but High Court Judge George Odunga extended it by 90 days.

This followed consent by lawyers, CBK and KDIC who wanted more time to explore other viable options of resuscitate the mid level lender.

According to the law, KDIC was to confirm to CBK upon expiry of the 90-day period whether or not the bank could be revived.

However, as it appears, a lasting solution is yet to be found to revive the bank.

CBK remains optimistic that headway will be made in the coming days.

"In order to advance the resolution of the receivership and in keeping with their respective mandates, CBK and KDIC will in the coming days issue a tentative timeline and prospective milestones for the resolution of IBLR’s receivership.

"CBK and KDIC will continue to engage stakeholders concerning the next steps in the resolution for IBLR, as permitted by the law," said the regulator.

It assured depositors, creditors and the public that steps to resolve IBLR's receivership will be professional and within the law.

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