Central Bank of Kenya in Nairobi. [Photo/KBC]
MMC Africa Law has moved to the High Court in Nairobi on behalf of depositors of Imperial Bank Limited demanding the unconditional release of their deposits totaling more than Ksh 100 billion, interest on the said deposits and other unspecified damages.
In the constitutional petition filed at the High Court in Nairobi against the Central Bank of Kenya and the Kenya Depositors Insurance Corporation (KDIC), the depositors contend that the actions of the CBK and KDIC have violated their right to property as protected under Article 40 of the Constitution and the right to fair administrative action.
In a public interest case steered by MMC Africa Law that could see more petitioners join this precedent-setting suit, the outcome could have huge implications on the banking sector, consumer rights and the CBK’s institutional accountability under the new constitution.
On 13th October 2015, the Central Bank of Kenya placed Imperial Bank Limited under receivership and subsequently, appointed the Kenya Deposit Insurance Corporation (KDIC) as the Receiver. This in effect suspended all the banking business of the bank and as a consequence, depositors have been unable to access their lifetime deposits.