After Kenya’s branch was closed down in Oct 2015, Central bank of Uganda has sold out 58.6 pc ordinary shares of Imperial Bank (Uganda), formerly held by Imperial Bank (Kenya), to Exim Bank Ltd, Tanzania.
The transaction has brought down Imperial’s Bank assets whose only subsidiary was the Ugandan unit which was formed in 2010. Kenya had invested Kes 858 millions in the Ugandan subsidiary by close of 2014.
Exim Bank is the largest lenders in Tanzania and also operates its subsidiaries in Djibouti and the Union of Comoros. Imperial bank Uganda received the receivership demand after fraudulent accounts were reported which is the same case that caused closure of Kenyan branch.
Shareholders, bondholders and other creditors to the bank have only the assets in Kenya to claim from.
This sale is underway and nothing has been concluded yet!