Imperial Bank of Kenya. [Photo/nation.co.ke]Depositors of the collapsed Imperial Bank have moved to the High Court demanding the unconditional release of their money totaling to more than Sh100 billion.

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In a petition filed in Nairobi, through MMC Africa Law, against Central Bank of Kenya (CBK) and Kenya Depositors Insurance Corporation (KDIC), the depositors contend the actions of CBK and KDIC have violated their right to property as protected under Article 40 of the Constitution and the right to the fair administrative action.

MMC Africa Law team leader Edward Muriu said the suit could attract more petitioners whose outcome could have huge implications on the banking sector and consumer rights. “As a state organ, CBK has the obligation to observe, protect, promote and fulfill the rights guaranteed in the Constitution.

Additionally, CBK and KDIC are also bound by the national values which include transparency, accountability, and good governance,” said Muriu. CBK placed Imperial Bank under receivership on October 13, 2015, and subsequently, appointed KDIC as the receiver.

This in effect suspended all its banking business and as a consequence, depositors have been unable to access their deposits. The depositors allege that by closing the bank without giving information, justification or notice of the proposed administrative action, CBK and KDIC violated Article 47 that guarantees the right to the fair administrative action.

The petitioners argue that CBK has statutory obligations under the Central Bank of Kenya Act, the Banking Act and the Prudential Guidelines, which include licensing, supervision and regulation of banking institutions.

As the law stands currently, the maximum claim guaranteed under the KDIC Fund is Sh100,000 which the petitioners claim is neither appropriate, sufficient. They are seeking declarations that CBK and KDIC violated their rights to fair administrative action, right to property and right to consumer protection. As such, they seek the court to make orders that include, immediate access to their deposits, interest, and damages.