Kenya’s NIC Bank now in Control of Defunct Imperial Bank; all Branches to re-open as Over 470 employees are taken-over

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NAIROBI The Central Bank of Kenya (CBK) appointed National Industrial Credit Bank (NIC Bank) the as asset and liabilities consultant for the defunct Imperial Bank a move that has revived hope among depositors.

The Agreement allows NIC Bank to acquire some of the deposits, assets and liabilities of Imperial Bank once its receiver manager of Kenya Deposit Insurance Corporation (KDIC) starts liquidation process.

Imperial Bank was established in 1992 as a Finance and Securities Company and commenced commercial banking services in 1996 following the issuance of a banking license by the Central Bank of Kenya and the National Banking Regulator. It collapsed in 2015.

NIC took over the responsibility of returning funds to the failed bank’s deposit customers. NIC is to acquire the deposits and some of the assets of collapsed Imperial Bank Ltd, said Kenya’s Central Bank Governor Patrick Njoroge.

He further noted that NIC Bank will in the meantime be preparing to re-open Imperial Bank’s 28 branches and also take over its estimated staff of 470 employees.

The CBK said it had hoped that the proprietors of Imperial Bank would inject cash into the institution but CBK has recently learnt that the shareholders had failed to comply.

On October 13, 2015, CBK placed Imperial Bank under the management and control of the state owned Kenya Deposit Insurance Corporation (KDIC) because of what the Bank termed as unsafe and unsound business conditions at the bank.

NIC Bank will act as the asset and liability consultant for the Imperial Bank which is currently under receivership. The role endorsed by CBK on Tuesday will also enable NIC advice KDIC in regards to the servicing of loans, staffing and other assets of Imperial Bank.

As part of the appointment, NIC Bank will disburse on behalf of KDIC payment to the depositors of Imperial Bank on terms and conditions to be mutually agreed.

The Group Managing Director of NIC Gachora John told the media in Nairobi without being specific to the timeline that is likely to happen within the KDIC’s 12month receivership mandate which ends October 13, 2016 exactly a year since the collapse of Imperial Bank.