Imperial Bank receivership illegal - lawyer

Central Bank of Kenya (CBK) Governor Patrick Njoroge committed an illegality when he placed Imperial Bank Ltd under receivership without approval from the regulator’s Board of Directors, a court heard on Wednesday.

Lawyer Ahmednasir Abdullahi , representing the lenders’ shareholders, on Wednesday told Justice Olga Sewe that Dr Njoroge made the decision as an individual, which is against the law, because the CBK did not have a properly constituted board of directors at the time, which is lawfully mandated to make that decision.