It is sad people. Public confidence in banks is in tatters now just because of one headline. If you understand about fractional reserve then you will appreciate the grim situation. Basically in a bank run where people decide to withdraw their savings from banks the banking industry undergoes a crisis.

@mawinder is hinting that people are withdrawing from other institutions. It is important to remember that when you put your money in a bank, the bank does not safely tack it away in a safety deposit box! The bank actually gives your money out to others. What's more, with fractional reserve, the bank gives out more than it owns.

Therefore if depositors decide to withdraw, only the first few will be able to get money. At some point it becomes overwhelming for the bank and thus liquidity crisis hinted by @mainat.

It's sad folks if people decide to withdraw in droves.

This is just so you understand the beast called a bank. Not meant to scare you please!

Don't quote me but I'm meant to understand from a friend working at the watchdog somewhere that there is a bigger shocker on the way on one of banks . I like this Njoroge guy . I'm worried about him stepping on big boys shoes hence his safety . Iv always said we need someone with a different culture to run some institutions. Njoroge has been installed with "outside kenya culture" of doing things . maybe it's because the tempo hasn't been corrupted but I hope he will keep the tempo he got from his previous employer .we need such leaders but not leaders who ask him why he isn't married .

Did CBK consider the repercussions on the depositors and other customers/stakeholders? Was this something a fine could have fixed? I am no banker but I feel like the punishment does not fit the crime. As another poster mentioned, inasmuch as we argue that it's not liquidation of the bank, Imperial's goose is pretty much cooked. Even if it is given a clean bill of health, the moment it reopens there will be mass withdrawals. Then profitability and liquidity issues will appear for real.
If this was purely a compliance issue CBK may have overreacted.

G with 4letters

@kularaha u made my day .the man cannot be swayed Especially with women lol . Samson alianguka because of Delilah , Adam alianguka because of eve. King David alianguka the same , 2nd president wetu aliimarika by being solo. So my point is this huyu jamaa will do good since the greatest weakness men have has been overcomed .on a lighter note though