Central Bank of Kenya (CBK) Governor Patrick Njoroge Thursday said investors in the collapsed Imperial Bank’s Sh2 billion bond will be refunded cash even though not at the rate of return promised in the information memorandum. Holders of fixed deposit accounts will also miss out on interest payments.

Dr Njoroge, however, told MPs that the CBK is pursuing perpetrators of the Imperial Bank scam, denying claims of inaction.

“There is no softness, but we need to put together a solid case that can stand legal scrutiny,” he said.

The governor disclosed they were building a case against senior managers of Imperial Bank who authorised falsification of financial statements presented to CBK even as MPs feared culprits will flee the country.

“The Banking Act is clear on misrepresentation of accounts, which is a criminal act,” said Mr Njoroge.

MPs noted that the sentence of three years for misrepresentation was lenient, urging the CBK officials to bring recommendations to be passed into law.

The CBK has already sued the Imperial Bank acting managing director Naeem Shah and chief financial officer James Kaburu for colluding with the main perpetrator, the late Abdulmalek Janmohammed.