The central Bank of Uganda has taken over the management of the Kenyan owned Imperial Bank Uganda Ltd.

According to Prof. Emanuel TumusimeMutebile, the Governor Bank of Uganda, the decision follows the suspension by the Central bank of Kenya of the operations of Imperial Bank of Ltd, Kenya who are the majority shareholders of Imperial Bank (U) Ltd.

“Under section 88 and 89 of the Financial Institutions Act 2004, THE Bank of Uganda has today Tuesday, October 13 2015 taken over the management of Imperial Bank (U) Ltd,” said the Mutebile in a statement which he read to journalists on Tuesday afternoon.

Central Bank of Kenya placed Imperial Bank under receivership for a year for what was termed as unsafe banking conditions.

It subsequently appointed the Kenya Deposit Insurance Corporation to assume the management and control ofImperial Bank for a period of twelve months.

According to reports, the bank recently raised a Sh2 billion debt through a corporate bond that was marginally oversubscribed.

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While addressing journalists at the Bank of Uganda premises, the Governor explained that the Central bank is not closing Imperial Bank (U) but only taking control to ensure the interests of depositors are protected.

“The importance of this move is to safeguard the interests of the customers and owners in the day to day operations of the Bank,”  “The bank of Uganda would like to inform the customers and general public that Imperial Bank (U) Ltd will remain open and its operations will continue normally as the case has been but directly under the control of Bank of Uganda,” Says the Governor.

He also stresses that the Central Bank will remain in control of Imperial Bank (U) Ltd until they are certain any implications arising from’s operation in Kenya have been resolved.