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.
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.
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.
Overview 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). 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.
History 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. 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.
Subsidiaries and Investments The companies that comprise the Imperial Bank include the following: Imperial Bank Kenya – Retail banking – Nairobi, Kenya – 100% Shareholding – A commercial bank in Kenya, serving individuals and businesses, focusing mainly on large corporations. This is the flagship company of the group. Imperial Bank Uganda – Retail banking – Kampala, Uganda – 58.6% Shareholding – A commercial bank in Uganda.
Ownership The stock of the bank is privately held. The bank is a wholly owned subsidiary of Imperial Securities Limited. The detailed shareholding in Imperial Securities Limited is as follows:
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
Branch network , the bank maintained a network of branches at the following locations:
Head Office – Imperial Court, Westlands Road, Westlands, Nairobi Westlands Branch – Imperial Court, Westlands Road, Westlands, Nairobi Upper Hill Branch – Bunyala Road, Upper Hill, Nairobi IPS Branch – IPS Building, 8th Floor, Kimathi Street, Nairobi Parklands Branch – Regal Plaza, Ground Floor, Limuru Road, 6th Avenue, Parklands, Nairobi Card Centre – Regal Plaza, Ground Floor, Limuru Road, Parklands, Nairobi Highridge Branch – Masari Road, Parklands, Nairobi Mombasa Branch – Imperial Bank Building, Kaunda Avenue, Mombasa Diani Branch – Beach Road Next to Collier Centre, Diani Karen Branch – 1st Floor, Cross Roads Mall, Karen, Nairobi Malindi Branch – Galana Centre, Lamu Road, Malindi Watamu Branch – Tourist Road, Watamu Thika Branch – Pushpa Plaza, Nkrumah Road, Thika Eldoret Branch I – Imperial Court, Nairobi Road, Eldoret Kilifi Branch – Kilifi Arcade, Biashara Street, Kilifi Industrial Area Branch – Bamburi Road, off Enterprise Road, Nairobi Village Market Branch – Village Market, Limuru Road, Gigiri Riverside Branch – Riverside Green Suite, 1st Floor, Riverside Drive, Nairobi Likoni Branch – Nova Holdings Complex, Nyerere Avenue, Mombasa Haile Selassie Branch – Blueroom Building, Haile Selassie Road, Mombasa Bamburi Branch – City Mall, 1st Floor, Bamburi, Mombasa Changamwe Branch – Rhino Properties Refinery Place, Mombasa Junction Branch – Junction Mall, Fourth Floor, Ngong Road, Nairobi Nakuru Branch – Ground Floor, Westside Mall, Nakuru Greenspan Branch – Manyanja Road, Off Outering Road, Nairobi Eldoret Branch II – Laboso House, Kenyatta Street, Eldoret Nyali Cinemax Branch – Nyali Cinemax, Mombasa. Westgate Mall Branch-Nairobi GardenCity Mall Branch – Thika Road Lunga Lunga Branch – Industrial Area, Nairobi
Governance Alnashir Popat, a non-executive director of the bank, serves as the Chairman of the seven-member board of directors. Following the death of Abdulmalek Janmohamed in September 2015, Naeem Shah was named managing director, on an interim basis.
Recent Developments 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.
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, 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.
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.
3 May 2017, NIC Bank completes its process with assisting on the Imperial Bank Limited investigation and pay out structure.
See also
Imperial Bank Uganda List of banks in Kenya Central Bank of Kenya Economy of Kenya
References
External links Website of Imperial Bank Limited Website of Central Bank of Kenya Imperial Bank’s Expansion Pays Off