About Deposit Insurance
In 1989, the government of Kenya established the Deposit Insurance System (DIS), dubbed “Deposit Protection Fund Board”, which has since transited to the Kenya Deposit Insurance Corporation (KDIC). KDIC is mandated to protect depositors against the loss of their insured deposits in the unlikely event of failure of a member bank.
KDIC membership is compulsory and its members includes commercial banks, mortgage finance companies and Microfinance banks licensed by Central Bank of Kenya. The current membership comprise of 41 Commercial banks, one Mortgage Finance Institution and 13 Deposit Taking Microfinance banks.
In Kenya, the DIS is an integral component of an effective financial safety net which protects small, vulnerable and unsophisticated depositors. As such, this enhances consumer protection. When a bank fails, the protected depositors are notified through the media, on the process of lodging a claim to their protected deposits.