CBK blames suits for delay in collapsed banks payout
Central Bank of Kenya governor Patrick Njoroge. PHOTO | FILE
The Central Bank of Kenya (CBK) is blaming court cases filed against it for delays in paying out depositors of Imperial and Dubai banks.
Only 760 Dubai Bank depositors out 7,743 accounts had been paid Sh47 million as at Wednesday, out of the expected payout of Sh123 million for those holding Sh100,000 or less in the lender.
About 86 per cent of Imperial Bank depositors have received their money, CBK governor Patrick Njoroge told MPs on Thursday. He said the legal challenges were impeding the payouts.
Early this week, Mombasa-based billionaire Ashok Doshi, who has more than Sh1 billion locked up in collapsed Imperial Bank, filed an injunction against the CBK.
“The court cases really slow us down and if we have to go round addressing each one of them you could imagine how much time we lose,” he said.
Dr Njoroge said instead of suing the CBK, the depositors should “actually enjoin with us and support the Kenya Depositors Insurance Corporation (KDIC) against the shareholders who are filing for court injunctions”.
In February, the shareholders of the Imperial Bank moved to court to prevent the CBK, the KDIC, KCB and Diamond Trust Bank from undertaking any activities towards its liquidation.
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