Five years ago, Imperial Bank was placed under receivership on the basis of inappropriate banking practices.  It is reported that Kenya Deposit Insurance Corporation (KDIC) is appointed as the receiver by the Central Bank of Kenya.

Last month, Kenya Commercial Bank was granted approval by the Central Bank of Kenya and The National Treasury and Planning to acquire Imperial Bank, media reports said.

The Central Bank of Kenya in a statement said “CBK welcomes this transaction that marks a significant milestone in the resolution of Imperial Bank and enhances banking sector stability. It is reported that the amount will be paid to Imperial Bank depositors over a period of four years.

Kenya Commercial Bank will acquire certain assets and liabilities of Imperial Bank at a value of $29.8 million, media reports said. It comprises banking subsidiaries in Uganda, Tanzania, Rwanda, Burundi, Ethiopia, and South Sudan in East Africa.

As of March, Kenya Commercial Bank had a market share of 14.5 percent, media reports said. More recently, it was reported that the bank has replaced KPMG with PwC as its external auditor. Prior to this, KPMG had lost its banking client Absa Group.

PwC has been National Bank’s external auditor which was acquired by Kenya National Bank. Currently, KPMG, PwC, Ernst & Young and Deloitte are Kenya’s four major auditors. Last December, Kenya National Bank had recorded a 5 percent jump in profit after tax to Sh 25.2 billion.

The post KCB to acquire Imperial Bank under receivership appeared first on International Finance.