| Imperial Bank Kenya | |
| Type: | Private |
| Foundation: | 1993 |
| Location: | Nairobi, Kenya |
| Key People: | Alnashir Popat Chairman Naeem Shah Ag. Managing Director[1] |
| Assets: | US$497.7 million (KES:43 billion) (2013) |
| Revenue: | Aftertax:US$21.453 million (KES:1.854 billion) (2013) |
| Industry: | Financial services |
| Products: | Loans, Checking, Savings, Investments, Debit Cards |
| Homepage: | Homepage |
Imperial Bank Limited commonly known as Imperial Bank, is a commercial bank in Kenya, the largest economy in the East African Community. It is one of the forty-three commercial banks licensed by the Central Bank of Kenya, the central bank and national banking regulator.[2]
On 13 October 2015, the Central Bank of Kenya placed Imperial Bank under the management and control of the state's Kenya Deposit Insurance Corporation because of what the Central Bank termed as "unsafe and unsound business conditions" at the Bank. Separately, sources said an internal fraud scheme had occasioned the move.[3]
The Central Bank of Kenya had hoped that owners of Imperial Bank would inject cash into the institution but has recently lamented that the shareholders had failed to make good on their promise.
Depositors of the troubled bank can now make their claims at any Central Bank of Kenya or Diamond Trust Bank Group branch and such claims will take three days to confirm their details before they are paid.[4]
Imperial Bank is a medium-sized retail bank that caters to both individuals and corporate clients., the bank's total asset base was valued at about US$498 million (KES:43 billion), with shareholders equity of approximately US$66.2 million (KES:5.719 billion).[5] At that time, Imperial Bank Limited was ranked the 19th largest Kenyan commercial bank, by assets, out of forty-three licensed banks in the country.[6]
Imperial Bank Limited was established in 1992 as a Finance and Securities Company. In 1996, the bank commenced commercial banking services, following the issuance of a banking license by the Central Bank of Kenya.[7] In January 2011, the bank, in partnership with Mukwano Group, a Ugandan business and manufacturing conglomerate, opened a subsidiary, Imperial Bank Uganda, with headquarters at 6 Hannington Road, on Nakasero Hill, in the center of Kampala's central business district.[8]
The companies that comprise the Imperial Bank include the following:
The stock of the bank is privately held. The bank is a wholly owned subsidiary of Imperial Securities Limited.[9] The detailed shareholding in Imperial Securities Limited is as follows:[10]
| Shareholder | Percentage held | Notes | |
|---|---|---|---|
| Imaran Investments Limited | 14.0 | Alnashir Popat, the chairman, has a 50% interest in this company. | |
| Abdumal Investments Limited | 14.0 | Anwar Hajee, Director, has a 50% interest in this company | |
| Janco Investments Limited | 13.5 | Abdulmalek Janmohamed, the managing director, has a 50% interest in this company | |
| Rex Motors Limited | 12.5 | ||
| Kenblest Limed | 12.5 | Jinit Shah, Director, has a 50% interest in this company | |
| Momentum Holdings Limited | 12.5 | Mukesh Kumar Patel, Director, has a 50% interest in this company | |
| EA Motor Industries Limited | 11.0 | Vishnu Dhutia, Director, has a 50% interest in this company | |
| Reynolds & Company Limited | 10.0 | Hanif Mohamed Amirali Somji, Director, has a 50% interest in this company | |
| 100.0 |
, the bank maintained a network of branches at the following locations:[11]
Alnashir Popat, a non-executive director of the bank, serves as the Chairman of the seven-member board of directors.[12] Following the death of Abdulmalek Janmohamed in September 2015, Naeem Shah was named managing director, on an interim basis.[1]
On 21 June 2016, the Central Bank of Kenya appointed NIC Bank as asset and liabilities consultant for Imperial Bank (in receivership). Effectively, NIC Bank took over the responsibility of returning funds to the failed bank's deposit customers. The agreement also allows NIC to acquire some of the deposits, assets and liabilities of Imperial once its receiver manager the Kenya Deposit Insurance Corporation starts liquidating the bank.[13]
On 11 January 2017, IBL Depositors Lobby Group (a collaboration of investors affected by the continuously delayed and fraudulent Imperial Bank receivership of October 2015,[14] drafted an open letter to the Central Bank of Kenya and Kenya Deposit Insurance Corporation (responsible for the receivership mandate) requesting a final statement regarding the ruling from Millimani Law Courts dated 4 November 2016 stating that 40% of the outstanding funds can and should be paid out to the effected parties awaiting their dues.[15]
24 March 2017, Central Bank of Kenya extends the receivership for another 90 days expressing that the handlers of the receivership (Kenya Deposit Insurance Corporation) require more time.[16]
3 May 2017, NIC Bank completes its process with assisting on the Imperial Bank Limited investigation and pay out structure.[17]