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1.Kenya Deposit Insurance Corporation (KDIC) is a Government Agency established under the  KDI Act 2012. Being a Resolution Authority, the Corporation is mandated to provide deposit insurance and ensure financial stability in the banking sector. (Section 5 of KDI Act, 2012)
2.KDIC is an autonomous State Corporation mandated to protect deposits in banks.
3.Prior to 2014, the Corporation - formerly, Deposit Protection Fund Board (DPFB) - operated as a department within the Central Bank of Kenya.
4.KDIC is headquartered in Nairobi

KDIC is the country’s agency that works with other Government agencies to resolve a troubled bank.

The Corporation employs various strategies to resolve a bank. These include; Early detection and intervention; Protected Deposit Payout; Liquidation.

“Deposit Insurance” or “Deposit Payout” is a mechanism implemented by a country to protect bank depositors - in full or in part, from losses caused by a bank that has been placed under liquidation by the Central Bank, due to its inability to meet its financial obligations.

Deposit payout is the second option invoked by the resolution authority where intervention measures have failed to RESOLVE the bank

KDIC protects depositors of the banks which are licensed and regulated by the Central Bank of Kenya.

All commercial banks that are licensed and regulated by the Central Bank of Kenya.

1.By promptly resolving a failed bank due to insolvency or any other reason.
2.By paying depositors their money in the unlikely event that a bank is placed in liquidation by Central Bank of Kenya.
1.By providing a Deposit Guarantee Scheme to depositors through protection of their savings held in the bank accounts in case of a bank failure.
2.By promptly resolving troubled or failed banks.
1.Through payment of protected deposits from the Fund, in case of bank failure;
2.Through early detection & timely intervention;
3.Through prompt resolution of a troubled bank;
1.The current Protection or Coverage limit is Kshs. 500,000.
2.This amount (protection payout) is only made available to depositors (paid) when a bank is placed under liquidation by the Central Bank of Kenya.
3.This payment cannot be made to depositors during receivership owing to prospects that the challenges facing the bank will be resolved.
1.Balances above protected limit is made to depositors upon recovery of assets of the failed bank.

NO. The annual premium for this protection is paid into the Fund by the banks that are members of KDIC.

i.If the financial institution is licensed and regulated by CBK.
ii.If it prominently displays a
1)Certificate of protection
2)KDIC membership sticker “This bank is a member of KDIC” and
iii.By checking if it is listed as a member institution on the KDIC website and Kenya gazette notice.


Deposit Insurance System

Conventional (normal) Insurance system (companies)



1.To protect bank depositors,
2.To promote the country’s financial stability.

To insure specific policyholders against specific risks.

Who are the Beneficiaries?

Depositors of banks licensed and regulated by Central Bank of Kenya.


Who is Insured?

Bank (member institution)


Who pays the premium?

Banks pay a premium to KDIC.

Policyholder pay premium to the insurance company/agent

When is compensation done?

When the bank is placed in liquidation by Central Bank.

When the specific risk insured happens. For example, a vehicle is stolen or involved in an accident;

What’s the Maximum compensation?

Kshs. 500,000 per person in an institution, and further payments as per recoveries made

Varies based on the insurance policy and the sum assured

There are three stages of resolving a bank that is experiencing challenges namely:

1. Receivership:

A bank is placed under receivership if it fails to meet its financial obligations - including failure to pay its depositors - when they fall due or as per the provisions of KDI Act. During this period, KDIC in conjunction with CBK and The National Treasury will explore possibilities to resolve the bank with a view to resuming normal banking operations within a specified timeframe.

2. Liquidation:

This is the second stage after receivership during which depositors are paid the protected amount of Kshs. 500,000, subject to complete document as provided for. Further payments are made to depositors and creditors upon recovery from the assets of the failed bank.

3. Winding up:

This is the last stage of the bank resolution process. It involves dissolving the bank after its assets have been realized and proceeds distributed to depositors and creditors.

i.During receivership, you are expected to continue servicing your loan as per the terms of your loan contract with the bank.  In case you default, the bank will employ the normal loan recovery methods as appropriate.
ii.During liquidation, the loan amount outstanding including interest becomes payable immediately. You are therefore expected to liaise with KDIC to settle the balance or agree on a reasonable loan repayment plan.
i.Currently, the law does not allow you to file a claim on behalf of someone else unless you have a duly registered power of attorney to lodge a claim.
ii.If outside the country, you can lodge your claim online attaching original notarized supporting documents.  
  • KDIC does not resolve depositor-related complaints/cases such as mistaken deposits.

Physical Address:  UAP Old Mutual Towers, 23rd Floor,   Upper Hill Road.

For complaints:

For whistleblowing:

General information:

For press related requests:  

 Postal Address:  P.O. Box 45983 - 00100, Nairobi.