NAIROBI: The liquidation process of Dubai Bank of Kenya will continue as there is no order stopping it. High Court judge Eric Ogolla sitting at Milimani, Nairobi, yesterday was asked to stop the liquidation but he is yet to finish hearing the application. A depositor, Richardson and Davids Ltd, has Sh142 million at the DBK.
The depositor sought to block the liquidation. Stopping it would pave way for other parties to convert their credit into equity or inject further capital to stabilise.
Richardson and Davids says the liquidation will subject depositors to loss. The Central Bank of Kenya has appointed Kenya Deposit Insurance Corporation as the bank’s liquidator. The firm says if liquidation is allowed it will leave the depositors with nothing as they will only be paid Sh100,000 initially, no matter how much they have deposited.
“Depositors can only get Sh100,000 refund as this is the only amount insured. Then they will have to wait to be paid the remainder after recovery is done,” the depositor said. The KDCI ascertains liabilities and divides bank assets among depositors.
