NewsGovt Goes After Loan Defaulters to Recover Ksh 45B

Govt Goes After Loan Defaulters to Recover Ksh 45B

-

- Advertisment -spot_img
  • The Government through the Kenya Deposit Insurance Corporation (KDIC) is seeking loan defaulters in 27 collapsed banks as it moves to recover Ksh45.5 Billion.

    Individuals and businesses who have not serviced their loans in the failed banks such as Chase, Dubai and Imperial risk having their properties auctioned in the recovery process.

    The Agency is seeking a management company to that effect and will use legal charge documents held by the banks as securities for the outstanding loans.

    “KDIC seeks to appoint a competent management company to oversee the operations of some of the borrowers of problem banks to recover the amount borrowed from the banks,” KDIC stated.

    KDIC CEO Mohamud Mohamud during a previous press briefing
    Twitter

    It noted that a majority of businesses stopped paying back their loans after the struggling financial institutions were placed under receivership.

    As of June 2018, KDIC has recovered Ksh10.2 billion with Ksh45.5 Billion still not paid.

    The agency observed that the pending loans were preventing the depositors in the collapsed banks from recovering their savings.

    The current law gives depositors priority during compensation from funds recovered from a collapsed bank to a limit of Ksh500,000 per account.

    In April 2016, the Central Bank of Kenya (CBK) appointed the Kenya Deposit Insurance Corporation (KDIC) as receiver for Chase Bank Limited pursuant to the provisions of Sections 43(1), 43(2) and 53 (1) of the Kenya Deposit Insurance Act, 2012.

    Two years later in April  2021, KDIC submitted the Receiver’s Report to CBK recommending that CBLIR be liquidated. The report indicates that considering the weak status of the bank’s financial position, liquidation was the only feasible option.

    CBK has assessed the recommendation by KDIC and considered that liquidation would facilitate the orderly resolution of the residual assets and liabilities of the bank in accordance with the Laws of Kenya, to protect the interest of CBLIR depositors, its creditors, and the wider public interest.

    The resolution of Chase Bank left Imperial Bank Limited as the only other lender in receivership.

    File image of Kenyan bank notes
    File image of Kenyan bank notes
    Twitter
  • Source: KENYAGIST.COM

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Latest news

    Was ist eine toxische on-off-beziehung?

    Was ist eine toxische on-off-beziehung?What is a toxische on-off-beziehung? a toxische on-off-beziehung is a type of relationship where one...

    Ex-Govt Official in Ksh1.3 Billion Scandal Hospitalised After Court Release

    Former Nairobi Provincial Commissioner Davis Nathan Chelogoi is set to receive ongoing medical treatment at a hospital in the...

    Raila Allies Pile Pressure on Ruto as Talks Hit Dead End

    National Assembly Minority Leader Opiyo Wandayi, a close ally of opposition leader Raila Odinga and a senior member of...

    'They’re Jealous of Me', Nakhumicha Over Recent Criticism

    Cabinet Secretary (CS) for Health Susan Nakhumicha has strongly condemned the individuals criticising her over allegations of underperformance within...
    - Advertisement -spot_imgspot_img

    Court Orders City Lawyer Behind Ksh 283M Scam to Refund Loot

    The High Court on Thursday ordered a Nairobi lawyer to refund Ksh25 million he is accused of obtaining fraudulently. While...

    How to Buy Cryptocurrency with M-Pesa in Kenya: A Step-by-Step Guide on Binance

    Are you a Kenyan interested in purchasing cryptocurrencies using M-Pesa? Although direct purchases of cryptocurrencies via M-Pesa are currently...

    Must read

    Was ist eine toxische on-off-beziehung?

    Was ist eine toxische on-off-beziehung?What is a toxische on-off-beziehung?...

    Ex-Govt Official in Ksh1.3 Billion Scandal Hospitalised After Court Release

    Former Nairobi Provincial Commissioner Davis Nathan Chelogoi is set...
    - Advertisement -spot_imgspot_img

    You might also likeRELATED
    Recommended to you