Imperial Bank accepts KCB's final offer for takeover

In Summary

•The accepted final offer includes 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.

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

Imperial Bank has accepted KCB's final offer for its acquisition.

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

The bank has said that the interest rates payable on deposit balances will be in line with the existing deposit products.

Imperial Bank was put under receivership in October 2015.

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

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

Central Bank of Kenya and Kenya Deposit Insurance Corporation had announced a release of funds increasing total recovery to approximately 35 per cent of original eligible deposits held at the date of receivership.

Funds were previously made available in three tranches, and approximately 92 per cent of eligible depositors had been granted full access to their balances.

Last month, KDIC said Imperial Bank was among 17 banks which were at different stages of compensation. The lender had first been placed under statutory management in August 1999.

The lender has however said that the recovery does not include the realisation of approximately Sh36 billion of loans, translating to 50 per cent of the current loan balances linked to ongoing litigation.

The acceptance of this final offer increases total recovery for eligible deposits held at the date of receivership to 47 per cent to date.