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Court extends Imperial Bank receivership

Imperial Bank depositors protest.
Imperial Bank depositors protest. FILE PHOTO | NMG 

The High Court has allowed a request to extend Imperial Bank's receivership until a case by the Kenya Tea Development Agency (KTDA) filed is determined.

The Central Bank of Kenya (CBK) said in a statement on Thursday that the receivership period was increased by consent between CBK, Kenya Deposit Insurance Corporation (KDIC) and the KTDA and adopted by the court.

The tea agency, which has Sh2.9 billion in deposits at the collapsed lender, in a petition filed last month accused the KDIC and CBK of failing to disclose due diligence and steps taken to protect interests of depositors and not giving updates on the financial position of the bank.

“That there be and is hereby ordered that the status quo as to the interested party as of today’s date be maintained pending the hearing and determination of the application,” reads one of the consent order that allowed the extension of receivership to 70 days from July 31 July when it was set to expire.

The regulator also said it would provide further details to stakeholders as soon as a binding offer by KCB Bank #ticker:KCB to acquire the lender’s assets has been fully assessed.

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Imperial Bank was placed under receivership on October 13, 2015, after the CBK learnt of fraud, which milked the lender of Sh34 billion.

Information on the progress has remained scanty, which forced the KTDA to move to court seeking transparency.

In its petition filed through law firm J.K Kibicho Advocates, the tea agency notes that resolving the Imperial Bank matter has taken long, exposing it to danger of irreparable loss.

The KTDA wants the High Court to compel KDIC to give it access to information that would help it ascertain the true and current position of the bank. It further wants to be involved in ongoing discussions with KCB.

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