KCB to revise its buy offer for Imperial Bank assets

Patrick Njoroge
CBK Governor Patrick Njoroge. FILE PHOTO | NMG 

Kenya Commercial Bank (KCB) #ticker:KCB will send a revised binding offer to acquire Imperial Bank assets, Central Bank of Kenya (CBK) governor Patrick Njoroge has said.

While Dr Njoroge did not elaborate on reasons for the changes in the earlier offer KCB made for the collapsed lender’s assets, he revealed that the updated sale deal would be deliberated on by the Kenya Deposit Insurance Corporation (KDIC) board this week.

“There will be discussion next week (on the offer) at the KDIC board,” said Dr Njoroge at a media briefing last Thursday following Wednesday’s Monetary Policy Committee (MPC) meeting. The Business Daily has learned that the revised proposal contains significantly enhanced terms. KCB and the deposit insurer said earlier that the lender will acquire prime Imperial Bank branches following a takeover of its loan book.

KDIC chief executive Mohamud Ahmed said late December that Kenya’s largest bank by assets was at the time conducting due diligence that would pave the way for takeover of the unnamed branches.

“We are at looking at some branches...It will be a few. It’s too early days but by January we will know,” KCB chief executive Joshua Oigara said in December.


Financial details

Imperial Bank had 27 branches when it went under. Financial details of the takeover are yet to be made public.

The Central Bank of Kenya on December 11 appointed KCB as an agent of KDIC, the IBLR receiver manager, to disburse the funds to depositors.

Depositors, effective December, started accessing 12.7 percent or about Sh8 billion of deposit balances through KCB.