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DISPUTE

Imperial Bank Depositors want CBK to transparent on KCB’s offer

The lobby’s chairman faulted CBK and KDIC of being sneaky about the final offer.

In Summary

• The lobby  KDIC and the CBK  to be more transparent and less diplomatic about the offer from KCB

Imperial Bank depositors hold placards outside the Westlands branch. /ENOS TECHE
Imperial Bank depositors hold placards outside the Westlands branch. /ENOS TECHE

Depositors of the defunct Imperial Bank Limited have dismissed the takeover offer from KCB announced by Central Bank of Kenya on Friday as vague.

The Imperial Bank Depositors Lobby Group now wants CBK governor Patrick Njoroge to come clean on the final percentage they are going to receive from the original deposits and the balance which will remain with the Kenya Depositors Insurance Corporation.

 ‘’While we appreciate CBK’s update on the final closure, we find the statement on the final outcome for depositors of IBL-IR vague and ambiguous. We strongly urge both the receiver manager (KDIC) and the CBK governor to be more transparent and less diplomatic,’’ the lobby said in a statement.

The lobby’s chairman Mahmood Khambiye faulted CBK and KDIC of being sneaky about the final offer, making it difficult for anxious depositors who are already stretched to the end of their limits to understand.

‘’Since we cannot come up with a reasonable analysis based on the press release, we are asking KDIC and CBK to analyze what they have released so that the majority of our depositors who are not professional script writers or accountants have the correct information,’’ Khambiye said.

On Friday, CBK and KDIC announced acceptance of the final offer from KCB, which further enhanced recovery for depositors by 19.7 per cent.

In December, the regulator said funds totaling to approximately 35 per cent of original eligible deposits held at the date of receivership had been released.  Funds were previously made available in three tranches, and approximately 92 percent of eligible depositors had been granted full access to their balances.

The two government agencies said binding offer represents a viable proposal for the further resolution of IBLR, for the benefit of depositors and the strengthening of the Kenyan financial sector.

According to them, the remaining balances due will be released through a 12.5 per cent on completion of signing of the agreement,12.5 per cent on the first anniversary of the signing and 25 per cent each on the second, third and fourth anniversaries respectively.