This archive report was first published on 23 May 2020.
On May 4, 2020, the Central Bank of Kenya approved the acquisition of Imperial Bank's assets and liabilities by KCB Group, valued at KSh3.2 billion. This marked a significant milestone in the process, which received final approval from the Cabinet Secretary for Treasury and Planning on May 14, 2020.
As part of the deal, KCB will pay Imperial Bank depositors a total of KSh3.2 billion over the next four years, commencing from June 2, 2020. By the end of this period, depositors will have cumulatively recovered 37.3 percent of their deposits since payments began in 2015.
Imperial Bank was placed under receivership in October 2015 due to inappropriate banking practices. The initial target for the acquisition was KSh10 billion, but KCB later revised this down to KSh5 billion before settling on the final value of KSh3.2 billion. Notably, KCB emphasizes that this is an asset transfer deal, rather than an equity acquisition.
