By Our Reporter
Bank of Uganda (BOU) has today taken over the management of Imperial Bank Uganda. This decision has been taken following the suspension by the Central Bank of Kenya (CBK) of the operations of Imperial Bank Ltd. Kenya, who are the majority shareholder of Imperial Bank Uganda Ltd. CBK placed Imperial Bank under receivership for a year for what the regulator called unsafe banking conditions.
Making the statement at a press conference held at BOU offices in Kampala, the governor Emmanuel Tumusime Mutebile said, “This decision has been reached under Section 88 and 89 of the Financial Institutions Act 2004. The main purpose of the decision to take over the management of Imperial Bank Uganda is to safeguard the interests of the Bank’s customers in Uganda. This is a temporary statutory measure to allow for seamless operations as the affairs of the majority shareholder in Kenya are resolved.”
Tumusime assured customers the bank will remain open and its operations will continue normally.
In Uganda the bank was established in 2011 with the Mukwano Group being the 2nd biggest investor after Imperial Bank Kenya. It has 6 branches on Hannington Road in Kampala, Mukwano Place, Kyaggwe Road, Mukwano Shopping Centre Arcade, Nakivubo and Acacia Mall.
