KCB Bank Kenya Limited has finalized the process of settling claims by depositors of Imperial Bank Limited (In Receivership) (IBLR).
This follows the announcement by the Central Bank of Kenya (CBK) on December 11, 2018, appointing KCB Bank Kenya as an agent of Kenya Deposit Insurance Corporation (KDIC)—the IBLR receiver manager—to disburse the funds to the depositors.
The customers will access 12.7% of eligible deposit balances remaining at IBLR from Thursday December 20, 2018 from any of the KCB branches across the country.
KCB had presented a Binding Offer to CBK in respect to release of depositors funds and verification of loans, which the regulator accepted. The execution of the offer now paves the way for the verification of loans and controlled access to deposits.
Under the transaction, KCB Bank Kenya Limited is not acquiring IBLR and is in discussions with CBK and KDIC for the speedy resolution of IBLR.
KCB Group CEO and MD Joshua Oigara said: “This is a significant milestone which is yet another convincing marker of Kenya’s financial sector’s ability to offer viable solutions benchmarked against global best practice”
“We have put in place robust processes to guide the next steps and we will communicate the way forward to IBLR customers within a few days.”
Depositors who have claimed in the past through KCB Bank and still have their accounts active will not be required to fill any claim form and their available funds will be directly credited into their respective KCB Bank accounts. However, this group of depositors still need to counter check their account status with their respective KCB Bank branches.
Depositors who will be claiming their funds for the first time through KCB Bank are required to open an account with any of the KCB Bank branches and shall complete a claim form with the assistance of the bank officials who will forward the same to IBLR for processing.
The Binding Offer also outlines that KCB will complete the loan verification process within the first quarter of 2019. The loan verification process is expected to result in further recoveries for eligible depositors of IBLR.
This transaction offers KCB the opportunity to have a positive impact in the financial sector by providing businesses and individuals that had accounts with IBLR to continue with normal banking operations at KCB Group.