Imperial was placed under receivership on October 13, 2015 after the CBK learnt of fraud at the lender
In June 2016 appointed NIC Bank as a consultant for Imperial Bank with key task of separating the "good bank" from the "bad bank" on a legal arrangement
The arrangement which saw NIC process payments to depositors and collect loan repayments came to an end in May.
The Central Bank of Kenya has set a deadline of 48 weeks to conclude the receivership of collapsed lender Imperial Bank.
CBK and the Kenya Deposit Insurance Corporation (KDIC) will start the process of selling off the bank next month, with an invitation to potential buyers to file Expressions of Interest (EOI).
Imperial was placed under receivership on October 13, 2015 after the CBK learnt of fraud at the lender which saw Sh34 billion of depositors’ cash at the lender stolen.
“The formal process will commence with an invitation for Expressions of Interest (EOI) from potential strategic investors, and the bank’s shareholders if they so wish, in taking an interest in the bank,” said CBK in a statement on Friday.
“Mindful of the concerns by depositors and the need for the process to be fully credible to potential strategic investors in order to maximise the value for depositors, the entire process is anticipated to be about 48 weeks.”
Earlier this week, the High Court extended KDIC’s statutory management of Imperial for 90 days following an agreement by the receiver and the lender’s shareholders on the move.
The extension will bring the KDIC’s term as the collapsed lender’s statutory manager to one year and 11 months.
CBK said in the statement issued Friday that it will be seeking a further extension of the management period by 12 months, to cover the anticipated period of the sale of the bank.
CBK had in June 2016 appointed NIC Bank #ticker:NIC as a consultant for Imperial Bank with key task of separating the "good bank" from the "bad bank" on a legal arrangement-- technically referred to as “exclusion and transfer process.”
