CBK boss Dr Njoroge summoned to court over Imperial Bank recovery progress

CBK boss Dr Njoroge summoned to court over Imperial Bank recovery progress

Central Bank of Kenya Governor Dr Patrick Njoroge has found himself at the centre of ongoing court litigation with Imperial Bank shareholders.

The governor has been summoned to appear before court to answer to why the regulator is yet to furnish the bank’s owners with recovery plans.

The shareholders have voiced their frustration with dealing with the central bank arguing it has been slow in giving clear direction over the bank’s future.

Dr Njoroge will be required to appear before the court in person and show cause why contempt of court proceedings should not be commenced against him.

The summon was issued by Justice George Odunga with the case to be heard on March 24.

The move comes after the Justice Odunga last month issued a clarification, requiring the Central Bank of Kenya and the Kenya Deposit Insurance Corporation to contiously engage Imperial Bank shareholders.

The thirty-day notice summons have also been issued to KDIC acting Managing Director Mahmoud Mohammed as well KDIC board members Nasim Devji, Jeremy Nguze and Samuel Kimani.

Treasury Principal Secretary Dr Kamau Thugge and Attorney General Githu Muigai will also be required to appear before court.

The CBK and Imperial Bank shareholders have constantly batted heads over the handling of the receivership with each party filing multiple suits in court.

The protracted battle saw the Central Bank extend the bank’s receivership period to March this year as it puts its case and way forward for the bank in place.

In his January clarification, Justice Odunga stressed that both the CBK and KDIC were obligated to appraise shareholders on any moves that would lead to liquidation and allow for proposals to keep the bank open to be tabled.

Imperial Bank depositors have continuously voiced their frustration with billions of shilling still locked up in the bank.

Since 2015, depositors have accessed Sh2.5 million of their deposits, leaving large depositors to contend with uncertainty over their funds.

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