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A group of depositors in the defunct Imperial Bank Limited has threatened to sue Central Bank at the East African Court of Justice citing the regulator's failure to heed to their plight.
The Imperial Bank Depositors lobby group, which held prayers on Saturday to mark three years since the bank was put under receivership, accused CBK and KDIC of using the local court process to delay justice for victims.
The petitioner argued CBK officials' actions and omissions in the Imperial Bank fraud - which was orchestrated over 15 years - were in breach of the EAC founding treaty obligations on good governance of a banking institution to protect individual depositors' rights in a regulated bank.
Early this month, CBK announced receipt of a binding offer dated September 27, 2018, from KCB Bank Kenya Limited with respect to Imperial Bank Limited as part of the Expression of Interest process that was announced in October last year.
This was the fourth receivership extension after the High Court granted CBK and KDIC a 70-day extension of receivership on July 31, purportedly to negotiate a better deal for depositors from KCB, promising to once again conclude the process.
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