Court stops CBK, Imperial bank from paying depositors
What you need to know:
- The two have sued Imperial Bank and Central Bank of Kenya.
- The couple held both US dollar and shillings accounts with Imperial Bank, which is under receivership.
The High Court in Mombasa has suspended a scheme of payment to small depositors of the troubled Imperial Bank being implemented by two banks.
Justice Patrick Otieno issued the orders following an application by Mombasa based billionaire Ashok Doshi and his wife Amit.
The two have sued Imperial Bank and Central Bank of Kenya.
The scheme has been suspended pending hearing and determination of the application.
In their suit filed through lawyer Francis Kadima, the couple sought an injunction restraining the CBK and Imperial Bank from continuing with any dealings with their money in any manner, either by investing, transferring to other banks or the Kenya Insurance Deposit Corporation.
They also want an order directing the defendants to file Imperial Bank’s statement of accounts showing liquidity in the deposit account, audit statement published and approved for 2014/2015 and any other liquid and tangible securities held by the CBK as of October 13, last year.
The couple held both US dollar and shillings accounts with Imperial Bank, which is under receivership.
“The defendants are liable to pay both insured amounts and protected deposits once an institution is put under receivership,” Mr Kadima says in his suit papers.
Deposits the Imperial Bank held at the time it was put under receivership, he said, were enough to pay all depositors.
