KCB closes deal to acquire Sh3.2 billion Imperial Bank assets

The deal was officially sealed through the approval by CBK on May 4.

In Summary

• Imperial Bank accepted KCB's final offer for its acquisition in April last year.

• The offer had initially included a further recovery of 19.7 per cent of eligible depositor balances remaining at Imperial Bank.

KCB Group CEO Joshua Oigara
KCB Group CEO Joshua Oigara
Image: File ;ENOS TECHE

KCB Bank has officially acquired assets worth Sh3.2 billion from Imperial Bank limited.

The Central Bank of Kenya on Friday announced the official acquisition of assets effective June 2.

The deal was officially sealed through the approval by CBK on May 4 and Treasury CS Ukur Yatani on May 14.

"Imperial Bank will now be paid a total of Sh3.2 billion over a period of four years. Subsequently, the depositors will have cumulatively recovered 37.3 per cent of the deposits since 2015 when the payment commenced," read a statement by CBK.

Imperial Bank accepted KCB's final offer for its acquisition in April last year.

The offer had initially included a further recovery of 19.7 per cent of eligible depositor balances remaining at Imperial Bank.

Imperial Bank was put under receivership in October 2015 due to inappropriate banking practices and CBK was appointed as the receiver.

KCB had won the bid for the collapsed lender in July 2018, giving account holders higher access to their money.

KCB confirmed it will take over five branches of the bank as CBK and KDIC continue to explore options for the remaining staff and branches.

Kenya Deposit Insurance Corporation and KCB will provide details on the payment process of Imperial bank depositors.

CBK says this transaction is a significant milestone in the resolution of Imperial bank by enhancing banking sector stability.