Imperial Bank customers to access up to KShs 1.5M

The bank was placed under receivership in October last year

imperial bank
Imperial Bank customer, 85-year-old Sarikas Ion carries a placard during a protests outside the Westlands branch in Nairobi, May 31, 2016. KDIC has directed depositors to claim up to Sh1.5 million through NIC bank from July 26, 2016. PHOTO: ENOS TECHE/THE STAR

Imperial Bank depositors will access funds from next Tuesday (read July 26) following a court ruling that lifted an order barring disbursements, according to reports.

The bank had been placed under receivership for a year over what were termed unsafe banking conditions.

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This means that depositors will now be able to access up to Sh1.5 million each through NIC bank, receiver manager Kenya Deposit Insurance Corporation said in a statement on Tuesday, July 19.

Depositors will submit bank claim forms which will be available online on the KDIC and NIC websites from Thursday, July 21, the Star reports.

Mombasa High Court judge Patrick Otieno lifted the order last Friday to allow a payment plan that was being implemented by two commercial banks.

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The order was lifted following an agreement between Mombasa-based billionaire Ashok Doshi and his wife, Central Bank of Kenya and Imperial Bank.

The order had been enforced in April following an application by Doshi and his wife, who sought the suspension of the payment.

They wanted the receivership declared illegal and their Sh1 billion held by the bank given to them.

READ: Chase Bank: Down but not out

At the time the bank went down, the duo had jointly deposited Sh1 billion in a fixed account which was to mature in December 2015. But it was not to be as Imperial Bank was placed under receivership on October 13 that year.

Via the Star