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.
Bill ups deposit refund in failed banks to Sh1m
Wednesday February 10 2021
By OTIATO GUGUYU
Summary
The Treasury is fighting a bid to change the law to allow depositors in collapsed banks receive compensation of up to Sh1 million for each account.
A draft Bill set for debate in Parliament seeks to increase the payout for each account in a fallen bank from the current cap of Sh500,000 per depositor.
The compensation was in July last year increased to Sh500,000 from Sh1 million, marking the first rise in 30 years.
The low compensation had exposed wealthy savers to higher losses in the event of bank closures because the refund was not adjusted to take into account changing economic realities over the three decades.