As stipulated by the KDI Act 2012, institutions licensed and regulated by the Central Bank should contribute to KDIC an annual premium of 0.15 % of its total deposits as determined by the corporation.

The amount of contribution should not be less than Kshs. 300,000/= nor exceed 0.4 % of the average of the institution's total deposit liabilities during the period of twelve months.

Member intuitions are required to provide accurate and reliable information/data to KDIC so as to facilitate effective assessment of the premiums.

KDIC may increase the contributions of an institution beyond the prevailing rate when it appears that the affairs of the institution are being conducted in a manner detrimental to its own interests or to the interests of its depositors.   The Corporation shall serve on every institution a notice specifying the amount and the period. The amount should be paid not later than twenty-one days after the date of service of the notice.

An institution that fails to pay its contribution within the period specified in a notice issued shall be liable to pay a penalty interest charge not exceeding one half per cent of the unpaid amount for every day outside the notice period on which the amount remains unpaid.

The Corporation shall not accept any contribution by an institution if reduced or otherwise adjusted on the basis of any claim by the institution against the Corporation.

Arrangements are underway to adopt a risk based premium assessment based on the risk profile and appetite of member institutions.