The Central Bank of Kenya (CBK) has approved the liquidation of collapsed Imperial Bank Limited in Receivership (IBLIR).
According to CBK, the wind up of the bank follows the recommendations of an external auditor report submitted to the CBK on Tuesday.
The audit report, which was submitted to Imperial Bank’s receiver KDIC on December 7, 2021, recommended that the bank be placed in liquidation, as it had become insolvent.
“CBK has assessed the recommendations by KDIC, the external auditor’s report, other pertinent information and considered that liquidation would facilitate the orderly resolution of IBL-IR in accordance with the Laws of Kenya, to protect the interest of IBL-IR depositors, its creditors and the wider public interest,” read the statement in part.
This is setting the stage for the sale of the lender’s remaining assets.
“The report indicates that considering the weak status of IBLIR’s financial position, liquidation is the only feasible option,” stated the CBK Governor Dr Patrick Njoroge.
“Following four payment disbursements, 45,700 out of the 50,000 (92 per cent) depositors have accessed their funds in full.”
On Tuesaday, CBK appointed KDIC as the liquidator of Imperial Bank.
The regulator said the decision was arrived at to “protect the interests of Imperial Bank depositors, its creditors and the wider public”.
Njoroge says KDIC will release information about the liquidation of IBLIR and payment of depositors in due course.
CBK placed Imperial Bank under statutory management on October 13, 2015, due to what the reserve bank described as inappropriate banking practises following which the KDIC was appointed as the bank’s receiver manager.
During the six years, most of the money has been used to pay depositors, including the sale of Sh3.2 billion assets and liabilities to KCB Bank last year.
