KDIC Rolls Out Membership Stickers to Promote Safe Banking, Shore Up Deposits

It will now be easy for you to ascertain the safety of your bank deposits, thanks to new membership identification stickers, that have been rolled-out by the Kenya Deposit Insurance Corporation, KDIC.

Consequently, all you are required to do before making any deposits, is to confirm that your bank of choice is emblazoned with KDIC membership sticker- a mark of protection for your bank deposits.

The move comes slightly over one year, since the Corporation increased bank deposit payout limit to Sh500,000, up from Sh100,000, for each depositor of our member institution. 

The membership identification stickers are part of a wider public awareness initiative by the Corporation, in conjunction with its members-commercial and microfinance banks- aimed at not only promoting public confidence in our banking system but also ensure financial stability in our financial system.

Speaking during the inaugural sensitization forum for communication and marketing heads in the banking industry, KDIC’s Chief Executive Officer Mr. Mohamud Ahmed Mohamud, said the Corporation will through the integrated communication strategy engage all stakeholders including the public, aimed at promoting safe banking. “We would like our members to disseminate accurate, timely and credible information to depositors. With our new mandate, we want to work with all stakeholders to ensure problem banking is resolved promptly so that we do not have receiverships and liquidation in this country”, he asserted.

 Mr. Mohamud added: “That can only be achieved if all of us do business well and adhere to principles of good governance so as to protect the jewel which are deposits. We must guard deposits jealously and put in place systems so that our people can enjoy services offered by banks”.

The KDIC boss, observed that the membership stickers will be critical in not only streamlining and instilling confidence in the sector but also growing bank deposits. KDIC shall continue protecting deposits.

CEO Mr. Mohamud addressing a previous forum for heads of marketing and communication from the banking sector.

The Corporation is planning to roll out the much- anticipated Risk based premium, during which banks will be charged annual premium according to their ‘risk appetite’. Currently the premium is charged on a flat rate of 0.15 percent. Mr. Mohamud urged banks to streamline their policies and procedures as well as comply with all industry requirements to avoid higher premium rates. Also present during the virtual sensitization forum was the Corporation’s General Manager in charge of Risk and Examination, Mr Paul Manga.

The Corporation’s membership comprises all Commercial Banks and Microfinance Institutions licensed as deposit-taking and regulated by Central Bank of Kenya. Currently the membership stands at forty-two commercial banks, one mortgage institution and 14 Micro-finance banks.