NIC to pay Imperial Bank depositors in new deal

NIC Bank Group managing director John Gachora
NIC Bank Group managing director John Gachora (left) and Central Bank Governor Patrick Njoroge on June 21, 2016. PHOTO | DAVID HERBLING 

The Central Bank of Kenya (CBK) has appointed NIC Bank the asset and liabilities consultant for Imperial Bank (In Receivership) in a move that will see the Nairobi Securities Exchange-listed lender take charge of paying out depositors of the collapsed institution.

The agreement also allows NIC to acquire some of the deposits, assets and liabilities of Imperial Bank.

“NIC will disburse on behalf of KDIC a maximum of Sh1.5 million each to the remaining Imperial depositors, as soon as the High Court’s suspension of payments to Imperial depositors is lifted, and subject to account and identity verifications that were conducted previously,” CBK said in a statement on Tuesday.

“Once completed on this basis, 45,700 depositors (equivalent to 92 per cent of depositors) will have been paid in full or not claimed their balances of less than Ksh.2.5 million.”

A High Court ruling on the suspension of payments is expected on July 4, 2016, CBK said.