•Creditors of Euro bank, Kenya Finance Bank and Dubai Bank which are currently in liquidation will receive funds over a one year period.
•The latest additional tranche now puts the cumulative payments of claimants who will be fully paid to 97 per cent for Euro bank.
Image: MERCY MUMO
Depositors in collapsed lenders Euro Bank, Kenya Finance Bank and Dubai Bank will receive Sh200 million from the Kenya Deposit Insurance Corporation (KDIC)
This follows a successful recovery process and sale of assets of the three banks currently under liquidation. Depositors will receive funds over a one year period.
The latest additional tranche now puts the cumulative payments of claimants who will be fully paid to 97 per cent for Euro bank, 92 per cent for Kenya Finance Bank and 92 for Dubai Bank ltd.
At a Tuesday media briefing, KDIC chief executive officer Muhamud Ahmed said the corporation targets a total of 30,000 creditors with a minimum pay out of Sh50,000.
He said KDIC is currently overseeing the liquidation of 19 other institutions which are at different stages.
Dubai Bank was placed under statutory management by the Central Bank of Kenya in August, 2015, for a period of one year with KDIC as the receiver manager.
The bank experienced liquidity and capital deficiencies and breached its daily cash reserve ratio before being put under receivership and the subsequent liquidation.
Kenya Finance Bank has been under liquidation since 1996 and KDIC has completed payment of over Sh500 million to its depositors, according to Muhamud.
Other banks that are currently under liquidation include Chase Bank, (since April 2018) where KDIC is disposing off assets left out in the SBM Bank buyout two years ago.
The deal included 75 per cent of deposits, bank staff and branches and merging them with the operations of its Kenyan subsidiary, SBM Kenya.
KDIC said the bank's protected payments plan runs for two years, noting that 60 per cent of the depositors have received funds running into approximately Sh500 million.
Imperial Bank, Chaterhouse Bank, Post Bank Credit Ltd (May 1993), Meridien BIAO Ltd (April 1996), Ari Bank Corporation Ltd (December 1997), and Reliance Bank Ltd (September 2000).
Others include Trade Bank Ltd (August 1993), Thabiti Finance Co. Ltd (December 1994), Fortune Finance Co. Ltd (September 2000) and Daima Bank Ltd (June 2005).
Also under liquidation are Prudential Building Society (January 2005), Middle African Finance Ltd (August 1993), Pan African Bank Ltd. (August 1994), Pan African Credit & Finance Ltd. (August 1994) Prudential Bank Ltd. (May 2000), and Trust Bank Ltd (August 2001).