- Simon KiraguKenyans.co.ke
The Government through the Kenya Deposit Insurance Corporation (KDIC) is seeking loan defaulters in 27 collapsed banks as it moves to recover Ksh45.5 Billion.
Individuals and businesses who have not serviced their loans in the failed banks such as Chase, Dubai and Imperial risk having their properties auctioned in the recovery process.
The Agency is seeking a management company to that effect and will use legal charge documents held by the banks as securities for the outstanding loans.
"KDIC seeks to appoint a competent management company to oversee the operations of some of the borrowers of problem banks to recover the amount borrowed from the banks," KDIC stated.KDIC CEO Mohamud Mohamud during a previous press briefing
It noted that a majority of businesses stopped paying back their loans after the struggling financial institutions were placed under receivership.
As of June 2018, KDIC has recovered Ksh10.2 billion with Ksh45.5 Billion still not paid.
The agency observed that the pending loans were preventing the depositors in the collapsed banks from recovering their savings.
The current law gives depositors priority during compensation from funds recovered from a collapsed bank to a limit of Ksh500,000 per account.
In April 2016, the Central Bank of Kenya (CBK) appointed the Kenya Deposit Insurance Corporation (KDIC) as receiver for Chase Bank Limited pursuant to the provisions of Sections 43(1), 43(2) and 53 (1) of the Kenya Deposit Insurance Act, 2012.
Two years later in April 2021, KDIC submitted the Receiver’s Report to CBK recommending that CBLIR be liquidated. The report indicates that considering the weak status of the bank's financial position, liquidation was the only feasible option.
CBK has assessed the recommendation by KDIC and considered that liquidation would facilitate the orderly resolution of the residual assets and liabilities of the bank in accordance with the Laws of Kenya, to protect the interest of CBLIR depositors, its creditors, and the wider public interest.
The resolution of Chase Bank left Imperial Bank Limited as the only other lender in receivership.File image of Kenyan bank notes
- NEW ASSOCIATION26 September 2021 - 12:39 pm
- Revealed26 September 2021 - 12:01 pm
- Insider26 September 2021 - 11:32 am
- End Curfew26 September 2021 - 11:03 am
- Confessions26 September 2021 - 10:43 am
- Lucky26 September 2021 - 10:50 am
- Retaliation26 September 2021 - 9:39 am
- RIP26 September 2021 - 8:46 am
- Revealed26 September 2021 - 8:13 am
- Promises26 September 2021 - 7:44 am
- revealed26 September 2021 - 8:43 am
- Degree Bagged25 September 2021 - 7:34 pm