KCB Bank Kenya has decided to acquire Imperial Bank, which is presently under receivership according to the Central Bank of Kenya (CBK).

Founded in 1992 as a finance and securities firm, Imperial Bank became a privately-owned commercial bank in 1996.

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In 2015, the bank was placed under receivership due to inappropriate banking practices.

Subsequently, CBK appointed Kenya Deposit Insurance Corporation (KDIC) as the receiver.

KCB Bank, effective from 2 June 2020, will assume certain assets and liabilities of Imperial Bank valued at ‎KSH3.2bn ($29.8m).

As per the agreement, the amount will be paid to Imperial Bank depositors over a period of four years.

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This amount represents 37.3% of deposits being recovered by the depositors since 2015.

The decision to acquire Imperial Bank comes after KCB Bank received the necessary approvals from CBK and The National Treasury and Planning, earlier this month.

In its press release, CBK said: “CBK welcomes this transaction that marks a significant milestone in the resolution of Imperial Bank and enhances banking sector stability.”

KCB Bank, which has a market share of 14.5% as of March, is a wholly-owned subsidiary of KCB Group.

KCB Group is a Kenyan non-operating holding company, which owns banking subsidiaries in Uganda, Tanzania, Rwanda, Burundi, Ethiopia and South Sudan in East Africa.