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.