CBK demands a seat at Imperial Bank of Kenya, shoots down strategic investor bid…

Posted on October 28, 2015

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The attempts to revive the beleaguered Imperial Bank of Kenya moved a notch higher today.

At a meeting with the firm’s directors, industry regulator the Central Bank of Kenya issue a raft of demands including a permanent seat on the board before reopening the firm.

Also on the cards is a deal to scrap the current board of directors and also allowing depositors of upto Sh500,000 to withdraw their savings.

The regulator is however not keen on having a strategic investor in the bank. The directors had been keen of bringing on board fresh capital to bolster it’s ratios as it gears to open within the next month. imperial

Other guidelines agreed released by the regulator are as follows…

1. The Governor has categorically stated that the bank will be revived

2. He has stated that shareholders have committed to inject more funds and he will demand for it to be deposited in hard cash into CBKs accounts

3. Small depositors, below 500,000 will be allowed to withdraw their funds

4. Large depositors will only access 5% of their funds immediately and the rest staggered over a 2 year period

5. They need about Ksh5b in deposits to be converted to equity and this will be voluntary

6. The governor states that there is no strategic buyer. Further, he would not wish to have a strategic buyer at the moment. He is more interested in having the bank first up and running.

7. He expects the bank to be opened in 1 months time

8. He is keen to retain the management that was not involved in Fraud. He has even paid October salaries

9. The entire Board will be replaced. There will be no shareholder directors. CBK will have a permanent board seat

10. Bond holders money is ring fenced.  CMA will advice on how to proceed with that

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