Govt Goes After Loan Defaulters to Recover Ksh 45B
Central Bank of Kenya (CBK) building in Nairobi.
Simon Kiragu
Kenyans.co.ke
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.
End bonds redress standoff
Summary
The Capital Markets Authority (CMA) and the Kenya Deposit Insurance Corporation (KDIC) have been in talks for over two years to have cash invested in banks by fund managers separated from customer deposits and other bank liabilities.
The proposed policy holds the key to allowing investors in corporate bonds such as pension schemes to be paid when a bank collapses since their funds will not be spent on compensating depositors.
The stalemate over a proposed compensation policy for bondholders in the event of bank failure should be unlocked to revive the corporate bond market.
The Capital Markets Authority (CMA) and the Kenya Deposit Insurance Corporation (KDIC) have been in talks for over two years to have cash invested in banks by fund managers separated from customer deposits and other bank liabilities.
Hunt for loan defaulters in 27 collapsed banks
Tuesday May 04 2021
By PATRICK ALUSHULA
Summary
Kenya Deposit Insurance Corporation (KDIC) has launched the search for individuals and businesses that defaulted on loans tapped from 27 collapsed banks.
The agency is seeking a management company to auction or run the operations of the firms in defaults to recover unpaid loans in failed banks like Chase, Imperial and Dubai Bank.
The collapsed banks, excluding Chase Bank and Imperial Bank, had unpaid loans of Sh45.51 billion at the end of June 2018, the latest data KDIC show.
Kenya Deposit Insurance Corporation (KDIC) has launched the search for individuals and businesses that defaulted on loans tapped from 27 collapsed banks.
Markets regulator, KIDC restart talks on bonds cushion
Tuesday May 04 2021
By CONSTANT MUNDA
The Capital Markets Authority (CMA) has entered fresh talks with the Kenya Deposit Insurance Corporation (KIDC) and the Central Bank of Kenya (CBK) to end the stalemate on plans to compensate bondholders if a bank goes bust.
The capital markets regulator said on Monday talks on amending the Deposit Insurance Act to allow for such reimbursements are now “progressing well” after a two-year deadlock.
The proposed legal changes, the CMA reiterated, are aimed at ensuring “investments by retail and institutional investors through corporate bonds are separated from customer deposits and other bank liabilities in instances where a financially distressed bank has issued a corporate bond”.
CMA, deposits insurer in bondholders cash limbo
Summary
The capital markets regulator has since 2019 been seeking the support of KDIC and the Central Bank of Kenya (CBK) to amend the deposit protection law to have cash invested in banks by fund managers through instruments like bonds are separated from customer deposits and other bank liabilities.
Monday May 03 2021
By CONSTANT MUNDA
Summary
The capital markets regulator has since 2019 been seeking the support of KDIC and the Central Bank of Kenya (CBK) to amend the deposit protection law to have cash invested in banks by fund managers through instruments like bonds are separated from customer deposits and other bank liabilities.