Dubai Bank liquidator Kenya Deposit Insurance Corporation on Friday said it had only paid out Sh20 million compensation so far to 300 depositors.
The chief executive Aggrey Bett said claimants had received Sh100,000 each, but said the low turnout could delay the three-month timeline set for the compensation of all the 7,000 account holders.
“We are ready to compensate them (account holders). But only 300 have come, we don’t know where the others are,” he said in an interview on the sidelines of the Central Bank of Kenya’s launch of celebrations to mark its 50th anniversary.
He said it is likely most of the Dubai Bank account holders are still in the dark over its closure. Bett said they have set aside Sh123 million for the compensation of the 1,230 account holders with deposits of more than Sh100,000.
“We are having two to three customers coming in a day yet we ran adverts in the dailies detailing the compensation. We would like all of them to come for their money,” he said.
Dubai Bank was put in receivership by the CBK last month for failing to meet its financial obligations and cooking its books for years.
KDIC which was appointed the receiver recommended liquidation of the bank due to an immense weakness in its financial capacity.
It commenced processing payment of protected deposits of up to Sh100,000 per account three weeks ago, and requires depositors to collect claim forms and return them duly completed to Dubai Bank’s head office in Nairobi and the CBK branches in Mombasa and Nakuru.
Payment are being made through individuals’ bank and M-Pesa accounts provided by the claimant. Bett said other deposit and creditor balances will be paid after the sale of assets and collection of outstanding loans. He said this could take more than a year.
He could not confirm reports that the bank’s managing director Binay Dutta has fled the country.
“We have no information that the bank management has gone away,” he said.
He said the Criminal Investigations Department is handling the matter. Bett said forensic auditors will help establish the cause of the bank’s problems.
“We will take appropriate action on the management of Dubai Bank depending on the outcome of the investigations,” he said.
