Collapsed Imperial Bank depositors demand payment

The controversy surrounding the collapsed Imperial Bank has deepened after several depositors moved to court seeking orders compelling the receiver to pay them part of their deposits.

Vista Management Consultants Ltd, Kaushik Natwarlal Thakkar, Amool Jivraj Nathwani, Atul Shah and Dune Packaging Ltd, have filed separate applications claiming that they were left out of the initial payments made to depositors by the Kenya Deposit Insurance Corporation (KDIC).

The lender had last year made two separate payments to its depositors, through NIC Bank, which saw them access a million shillings in the first payment and Sh1.5 million in the second phase.

About 44,300 customers of the collapsed bank’s smaller customers with Sh1 million or less, who made up 89 per cent of the depositors prior to its fall, have since accessed their full amounts.

In the application before court, the depositors who were left out claim that they are likely to lose the part payment of their deposits because the bank’s receivership is scheduled to end on April 13, this year upon which the receiver manager will, according to the law, either confirm to the Central Bank of Kenya (CBK), whether or not the bank can be revived.

“Should the receiver manager recommend that the bank be liquidated, then our case will be irrelevant,” said the depositors through lawyer Issa Mansur.

They want their application, where they are alleging discrimination, heard and determined before April 13.

In their case, they have claimed that previous attempts to demand that the initial payment which was given to other depositors, be given to them as well, were not acted upon prompting their decision to file the cases in court.

Imperial Bank collapsed in October 2015. About a third of the collapsed bank’s 53,000 customers were large depositors. The lender held Sh58 billion in customer deposits as at the end of June 2015, months prior to its eventual collapse.

The case will be heard on Monday.

Higher diesel price drives up costs for transporters

African airlines want spirit of collaboration for Aviation growth