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FAQs

This is paid as liquidation dividend after the liquidator has recovered sufficient funds from the sale of the institution's assets and recovery of debts.

It is a cover that safeguards depositors against loses they would otherwise incur if a bank or deposit taking institution closes its operations. Depositors are entitled to claim an amount of Ksh. 500,000.

All accounts of each depositor in an institution are consolidated and paid up to the maximum insured sum of KShs. 500,000.00.

It is a cover that protects depositors against losses they would otherwise incur if a commercial or microfinance bank fails or is closed. The scheme as established in Kenya in 1985

A commercial bank or a deposit taking micro finance bank and regulated by the Central Bank of Kenya under the banking Act and the Microfinance Act.

Depositors are protected through a well-established Deposit Insurance Scheme which makes a pay-out of its Fund when a bank fails

Member Institutions admitted in the Deposit Insurance Scheme are issued with the protection certificate

The member institution (bank or microfinance ) pays the premium with no cost to the depositor. The premium contribution received constitutes the Deposit Insurance Fund

 

No. The customers are insured and reimbursed only upto a deposit coverage limit. The deposit coverage limit is often reviewed to match banking sector developments

 

KDIC endeavours to employ resolution mechanisms of going concern that guarantees higher pay-outs for depositors. 

Where such mechanisms have not worked, the Corporation realizes the assets and recovers debts from the failed institutions to pay liquidation dividends/pay-outs periodically. 

 

These are deposits in current accounts, savings accounts and time/fixed deposit accounts

Yes, foreign currency deposits held in Kenyan banks and Microfinance banks are insured. The residence or nationality does not matter. 

All accounts of each depositor in an institution are consolidated and a depositor paid up to the maximum insured sum.

Joint account is considered as being distinct and separate from individually owned accounts and therefore insured separately. 

Yes, the accounts are distinct and separate from individually owned accounts and therefore insured separately. However, the trustee must disclose the beneficial owners to the bank during accounts opening for this rule to operate. 

No. However, they are entitled to participate in the payment of liquidation dividends. 

KDIC publishes notices of the institution’s failure and advises depositors on the claim procedures. 

Depositors are required to fill and lodge claim form in order to facilitate prompt payment of the insured deposit up to a maximum.

 

  • A deposit that is not payable in Kenya;
  • Bearer negotiable instruments of deposit;
  • Any sum of money payable under a repurchase agreement;
  • Interbank transactions;
  • Financial instrument as may be specified by the Corporation;
  • Contents of a safe deposit box in any member institution;
  • Creditors of institutions. However, they are entitled to participate in the payment of liquidation dividends;
  • Capital market securities

 

18 institutions are currently under liquidation

The deposit insurance coverage is retained in the name of the new institution for the unexpired period

All banks, deposit taking microfinance banks and mortgage finance companies in Kenya and licensed and regulated by the Central Bank of Kenya are mandated to be members of the Deposit Insurance Scheme. 

Yes, Kenya’s banking system is sae and well regulated by CBK

Deposit insurance is necessary to cushion depositors from total loss of their money in the unlikely event of bank failure.

Yes, KDIC s part of the government. It is a state corporation created by statute, through the enactment of the KDI Act of 2012 (Cap. 487C) laws of Kenya. KDIC is under the National Treasury. 

No, coverage is automatic provided your bank is a member of KDIC.