Imperial Bank Limited (IBKL), 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 (CBK), the central bank and national banking regulator.
On 13 October 2015, the Central Bank of Kenya placed the 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 CBK 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 KCB or Diamond Trust Bank Group branch and such claims will take three days to confirm their details before they are paid.
Overview
The bank is a medium-sized retail bank that caters to both individuals and corporate clients. As of December 2013, 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.[7] 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.
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| Type | Private |
|---|---|
| Industry | Financial services |
| Founded | 1993 |
| Headquarters | Nairobi, Kenya |
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Key people
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Alnashir Popat Chairman Naeem Shah Ag. Managing Director |
| Products | Loans, Checking, Savings, Investments, Debit Cards |
| Revenue |  Aftertax:US$21.453 million (KES:1.854 billion) (2013) |
| Total assets | US$497.7 million (KES:43 billion) (2013) |
| Website | Homepage |
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
As of August 2014, 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.
March 24, 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.
May 3, 2017, NIC Bank completes its process with assisting on the Imperial Bank Limited investigation and pay out structure.
