Court extends KDIC’s statutory management role at collapsed Imperial Bank

Imperial Bank depositors protest in Nairobi last year. FILE PHOTO | NMG
Imperial Bank depositors protest in Nairobi last year. FILE PHOTO | NMG 

The High Court has extended the Kenya Deposit Insurance Corporation’s (KDIC) statutory management of collapsed Imperial Bank 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.

KDIC has also revealed that it has since March held four meetings with the collapsed lender’s shareholders.

The Central Bank of Kenya Monday said it will issue the public with an expected deadline for resolution of Imperial Bank’s receivership.

The bank was placed under receivership in October 2015 following the discovery of a Sh44.9 billion fraud scheme perpetrated by former managing director Abdulmalek Janmohammed and other senior officials at the lender.

The KDIC has since instituted three recovery suits against Mr Janmohammed’s family, Imperial Bank’s shareholders and 20 businessmen and firms believed to have aided the fraud scheme that took place over 13 years.

“This (extension) follows agreement between the shareholders, KDIC and CBK that it was necessary for KDIC to be accorded more time to resolve the receivership.

‘‘Going forward, CBK and KDIC will continue to engage stakeholders concerning the next steps in the resolution for IBLR, as permitted by the law,” the KDIC said Monday. Efforts to reach Imperial Bank’s shareholders for comment bore no fruit.

The shareholders had in February asked the High Court to jail CBK governor Patrick Njoroge for failure to hold meetings with them to discuss KDIC’s receivership period.