Imperial Bank collapsed with Kenya Power’s Sh. 322 million. Kenya Power reported the amount in its latest annual report, ranking among the large depositors who risk losing tens of millions of shillings following the bank’s failure in October last year.
“Imperial Bank deposits provision relates to a provision recognised against the full amount of cash that Kenya Power and Lighting Company Limited had invested in Imperial Bank of Kenya,” the company says in the report.
This has seen Kenya Power shift most of its short term deposits to KCB Group and Co-op Bank, cutting its exposure to the relatively smaller lenders.
“Credit risk arising from short term deposits and bank balances are low because the counter parties are financial institutions with high credit ratings,” the company says in the report.
Kenya Power’s short term deposits stood at Sh3.8 billion as of June compared to Sh4.2 billion a year earlier while cash balances dropped to Sh1.6 billion from Sh23.9 billion in the same period.
