Central bank extends KDIC's control of Imperial Bank

The buyout took place even as it emerged that Dubai Islamic Bank has spent more than Sh2 billion on the Kenyan subsidiary that was established nearly two years ago, but is yet to enter the lending market. PHOTO | FILE
One of the Imperial Bank branches. PHOTO | FILE 

The Central Bank of Kenya has extended the appointment of Kenya Deposit Insurance Corporation (KDIC) as a receiver manager of Imperial Bank for six months from October 13, 2016.

The regulator said this was after a request from KDIC for an extension of the period and the CBK's opinion that it is necessary for KDIC to remain in control of the lender.

KDIC was appointed receiver manager of Imperial Bank on October 13, 2015 after the bank collapsed over mismanagement.

"In light of the above KDIC will maintain the control, management and conduct of the affairs and business of the institution to the exclusion of its board of directors," cbk said in a statement to the media.

The Kenya Deposit Insurance Corporation (KDIC) management has been accused of by-passing Imperial Bank board and paying Sh1.5 billion to FTI Consulting, the American firm that was contracted to conduct a forensic audit at collapsed Imperial Bank.