Imperial Bank depositors to wait longer for payment
A court has said allowing partial payments will disregard the applications by the bank’s clients. PHOTO | FILE
Imperial Bank depositors who had not claimed their cash from the collapsed bank are set to wait even longer after the High Court declined to lift orders suspending the partial payments.
Justice Patrick Otieno refused to disallow the extension of the orders as sought by lawyers Philip Murgor and Paul Chege for Imperial Bank and the Central Bank of Kenya (CBK) respectively.
“To allow the process (scheme of payment) to go on is to disregard the applicants, it will not be just not to extend the orders,” said Justice Otieno in his ruling.
The Central Bank had appointed KCB and DTB to make payments of up to a maximum Sh1 million to depositors.
Mr Murgor and Mr Chege had urged the court not to extend the orders, an application that was opposed by lawyer Francis Kadima representing Mombasa billionaire Ashok Doshi and his wife who sued the two institutions.
Mr Kadima had argued that not extending the orders will be prejudicial to the hearing of the case at “this stage” saying the defendants are yet to place arguments before the court that need his response.
He told the court that how the depositors “will be handled” will determine the level of confidence individuals might have in the Kenyan financial system.
Mr Murgor, who said the court should consider the matter as that of national interest noting that out of the 50,000 depositors, 10,000 were yet to be paid their money back.
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