Imperial Bank Acceptance of Binding Offer from KCB

Following the announcement of the receipt of a Binding Offer from KCB dated September 27, 2018 Press Release, the Central Bank of Kenya (“CBK”) and Kenya Deposit Insurance Corporation (“KDIC”) continued to engage with KCB to enhance the value for IBLR’s depositors. Consequently, KCB communicated to CBK and KDIC in its letter dated December 7, 2018 the modification of the terms of the Binding Offer with respect to the release of depositors funds and verification of loans.

KDIC and CBK are pleased to announce the acceptance of the Binding Offer from KCB. The Binding Offer accepted, includes granting access to 12.7 percent of eligible depositor balances remaining at IBLR within 14 days of this announcement, subject to account and identity verifications. Combining this with earlier disbursements will result in a total recovery of approximately 35 percent of original eligible deposits held at the date of receivership. In addition, the Binding Offer 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. Further details will be announced upon completion of the exercise.

CBK and KDIC assess that KCB’s Binding Offer represents a viable proposal for the resolution of IBLR, for the benefit of depositors and the strengthening of the Kenyan financial sector. It is expected that the transaction will be concluded upon the execution and operationalisation of the Binding Offer. CBK and KDIC reiterate their commitment to protect the interest of depositors, creditors, and the wider public interest. This is in keeping with their respective mandates and in accordance with the Laws of Kenya.