Imperial has Sh3bn in tea farmers’ cash
Central Bank of Kenya (CBK) Governor Patrick Njoroge during a press conference on Imperial Bank on October 21, 2015. PHOTO | DIANA NGILA |
What you need to know:
The money was deposited a few months before the bank went under and the Central Bank of Kenya took over its management.
The fate of the money remains unclear but senators Wednesday the Ministry of Agriculture to tell them how the money will be recovered in two weeks.
“KTDA invested Sh2,926,365,091 in a fixed deposit account with Imperial Bank at the time it was placed under receivership,” said Dr Lesiyampe.
Tea farmers risk losing about Sh3 billion deposited in Imperial Bank after the financial institution was closed last November.
The money was deposited a few months before the bank went under and the Central Bank of Kenya took over its management.
It was revealed Wednesday that the Kenya Tea Development Agency had deposited the billions in a fixed account.
The fate of the money remains unclear but senators Wednesday the Ministry of Agriculture to tell them how the money will be recovered in two weeks.
According to the ministry, the account was opened in 2011 after it met all conditions required by KTDA management to serve farmers.
In a statement to the Senate, Agriculture Principal Secretary Richard Lesiyampe said deposits were made between May and September 2015.
“KTDA invested Sh2,926,365,091 in a fixed deposit account with Imperial Bank at the time it was placed under receivership,” said Dr Lesiyampe.
Despite the account being opened four years earlier, huge deposits were only made a few months before the bank went under.
Senators questioned this, saying the ministry should tell Kenyans why the agency put deposited billions at that particular time.
The ministry, however, said it had done due diligence in picking the bank.
