25 September 2017

Kenya: Imperial Bank Depositors Want CBK Held Liable for Collapse

Nairobi — Imperial Bank depositors have written to the Central Bank of Kenya with a list of demands they want to be met in a bid to recover money lost after the bank's 2015 closure by the CBK.

MMC Africa Law which is instituting a class action on behalf of Imperial Bank depositors says their clients want CBK held legally responsible for the collapse of mid-tier lender.

The law firm has asked the CBK to share the annual financial reports of the bank between 2011 and 2015, CBK onsite inspection reports and inspection reports in respect of the bank among other demands.

The letter addressed to CBK Governor Dr Patrick Njoroge warned of the intentions of the depositors to move to a constitutional court after 14 days should the regulator fail to adhere to the demands.

"Unless we receive your admission of liability together with the aforesaid documents and information within the next 14 days from the date of receipt of this letter, our clients intend to commence legal proceedings against CBK with a view of recovering all deposits held and lost in the said bank, consequential damages and interest and to compel you to provide the information as the case may be. The attendant costs shall be borne by CBK," the letter reads in part.

Last month, the High Court granted a 12-month extension of the receivership of Imperial Bank Limited.

The move followed an agreement with stakeholders to enable the regulator to move on with seeking a potential strategic investor that will revive the bank.

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