Imperial Bank shareholders sue CBK to stop liquidation


The Imperial Bank head office on Westlands Road in Nairobi. PHOTO | FILE

Shareholders of troubled Imperial Bank have asked the High Court to stop the Central Bank of Kenya (CBK) and the Kenya Deposit Insurance Corporation (KDIC) from liquidating the lender or transferring its assets.

The troubled lender’s shareholders have sued the CBK and KDIC seeking to stop them from taking any steps towards dissolution of Imperial Bank until their revival plan has been considered.

Imperial Bank’s owners have accused the CBK and KDIC of frustrating their efforts to revive the bank, including a proposed Sh10 billion capital injection into the collapsed lender.

The CBK in September last year shut down Imperial Bank to protect depositors from losing over Sh34 billion allegedly stolen by the lender’s deceased founder Abdulmalek Janmohammed.

The banking regulator has also instituted a recovery suit against the family of Mr Janmohammed and a network of companies believed to have helped him loot depositors’ funds.

READ: CBK tells Imperial Bank owners to deposit Sh10bn pledge

The bank’s shareholders have since its closure tried to resurrect Imperial Bank.

“The CBK and KDIC have refused to engage with the applicants regarding their bona fide proposals for the restructuring of the bank which include the shareholders’ voluntary injection of Sh10 billion.

“They have also demanded that the shareholders inject Sh20 billion into the bank as a precondition for their participation in Imperial Bank’s restructuring,” the shareholders say.