Imperial Bank customers begin accessing funds

 

Over five Imperial Bank (IBL) branches have today commenced their operations for the first time in nine months to ease the process of payments for the bank’s large depositors.

This follows an earlier joint agreement between the Kenya Deposit Insurance Corporation (KDIC) and NIC bank to kick start the process.

Four of the five IBL branches are in the Coastal region while Nairobi has today operated via one branch. Other clients have been advised to visit any NIC Bank outlet for similar services.

The four in the Coast include Diani, Kilifi, Malindi, Watamu and Parklands though large Imperial Bank depositors, whose money is still held up were able to just access their funds up to a maximum of Sh1.5 million, according to a statement issued by NIC on Monday.

“Depositors will be able to access a maximum of Sh 1.5 million of their funds in any of the 33 NIC Bank branches countrywide,” NIC said.

NIC Bank is set to further assume a majority of Imperial Bank Limited staff and branches.

The move came after NIC Bank assessed and determined the quality of Imperial Bank’s assets and liabilities, giving the mandate to process and manage pay-outs to depositors.

Last month, shareholders of the troubled bank had accused the Central Bank of Kenya (CBK) of rushing to liquidate the lender, complaining that the action by CBK to dispose the bank’s assets to NIC Bank was carried out in order to bury evidence of the regulator’s own role in the saga.

However, last week the same shareholders supported the move to pay depositors up to Sh1.5 million but asked the KDIC and the Central Bank to conduct the collapsed bank’s operations in a transparent manner after the court order was issued.

“The shareholders of Imperial Bank Limited have given their consent for the Kenya Depositors Insurance Corporation to liquidate the bank’s treasury bills to facilitate the Sh1.5million payout announced by CBK,” said the bank’s directors in a statement issued on July 20.

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