Farmers sue over Sh3bn in Imperial Bank deposits


Imperial Bank’s Upper Hill branch in Nairobi. PHOTO | FILE

Tea farmers have moved to court seeking to protect their Sh2.9 billion deposits held in the collapsed Imperial Bank.

Kenya Tea Development Agency filed a case at the High Court seeking to be enjoined in the case against the Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation and have the intended liquidation of the bank currently under receivership stopped.

The farmers’ agency says in court documents that it made four deposits in fixed accounts in May, twice in June and again in September last year amounting to Sh2.9 billion and which were meant to mature by December 2015.

Kennedy Omanga, KTDA secretary, said in an affidavit that while CBK had announced in a press statement that they  were considering having some of the large  depositors  convert their claims into equity,  the banking sector regulator failed to contact them over the same.