Imperial Bank shareholders are hindering the re-opening of the institution, seven months after its closure due to financial mismanagement by top officials.
Central Bank of Kenya Governor Patrick Njoroge on Tuesday revealed that the shareholders were un-cooperative and persisted in blocking the smooth receivership process of the bank.
“Shareholders are not interested in re-opening the bank. Our efforts to revive the bank have been hit with opposition,” said Njoroge.
Njoroge, while appearing before the Senate Finance, Commerce and Budget Committee said that court cases by shareholders had dragged the receivership process.
The lender’s shareholders are among those who have filed lawsuits against CBK, as well as the Kenya Deposit Insurance Corporation. They are seeking orders to stop the receivership process and have their revival proposals implemented.
The Governor said that a forensic audit was still ongoing to unearth the rot that led to the closure of the bank.
“Forensic auditors and relevant investigation agencies continue to investigate the fraudulent activities in Imperial Bank Limited and unsound business practices,” added Njoroge.
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