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FOR MEMBER INSTITUTIONS

According to the KDI Act of 2012, KDIC membership is compulsory. The membership comprises all institutions licensed as deposit-taking and regulated by the Central Bank of Kenya. Commercial banks, mortgage institutions, and microfinance banks are members of KDIC. Currently, KDIC membership stands at forty-two (42) commercial banks, one (1) mortgage institution, and fourteen (14) microfinance banks.

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.

KDIC has a statutory mandate to provide incentives to Banks for sound risk management. Since its inception as DPFB, the Corporation has been assessing premiums for the deposit insurance scheme on a flat rate basis of 0.15% of the annual average deposits. This model has since fallen short of the risk minimization mandate. To remedy this; the KDIC developed a Risk Based Model dubbed Differential Premium System (DPS). The model is designed to achieve the following objectives:

  • To provide incentives for banks to avoid excess risk taking
  • To introduce fairness into the premium assessment process
  • To mitigate the risk taking incentives created by the deposit insurance scheme

To reduce the cross-subsidy that stronger banks implicitly provided weaker banks under the flat rate premium system

The Risk Based Premium model operates on a simple principle of the “higher the perceived risk the bank has, the higher the Premium to be paid”. Unlike the Flat rate model, the Risk Based Premium model has two components:

 

The Flat Rate component

The Risk Based Rate component

The risk based rate is based on the Capital Adequacy (C) Asset Quality (A) management (M) Earnings (E) and Liquidity (L) rating, commonly known us CAMEL Rating, of the Bank by CBK. Under this model banks rated low by CBK will pay a risk premium while those rated “strong” will only pay a flat rate. The model aims at rewarding banks with sound risk management without punishing banks that are yet to implement sound risk management.

To fulfill this mandate, the Corporation provides a Deposit Insurance Scheme for member institutions to cater for limited coverage of deposits as provided for by law. The Corporation increased the coverage limit from Ksh 100,000 to Ksh 500,000 with effect from 1st July 2020.

The following Commercial Banks and Microfinance Banks are members of the Deposit Insurance Scheme. 

 

COMMERCIAL BANKS

1

ABSA Bank of Kenya Ltd

22

I & M Bank Limited

2

Access Bank (Kenya) Public Limited Company

23

Imperial Bank Limited (In Receivership)

3

African Banking Corporation Limited 

24

KCB Bank Kenya Limited 

4

Bank of Africa Kenya Limited 

25

Kingdom Bank Limited 

5

Bank of Baroda (K) Limited 

26

Mayfair Bank Limited 

6

Bank of India 

27

Middle East Bank (K) Limited 

7

Citibank N.A Kenya 

28

M-Oriental Bank Limited 

8

Consolidated Bank of Kenya Limited 

29

National Bank of Kenya Limited 

9

Co-operative Bank of Kenya Limited 

30

NCBA Bank Kenya Plc

10

Credit Bank Limited 

31

Paramount Bank Limited 

11

Development Bank of Kenya Limited 

32

Prime Bank Limited

12

Diamond Trust Bank Kenya Limited 

33

SBM Bank Kenya Limited 

13

DIB Bank Kenya Limited 

34

Sidian Bank Limited 

14

Ecobank Kenya Limited 

35

Spire Bank Ltd 

15

Equity Bank Kenya Limited 

36

Stanbic Bank Kenya Limited 

16

Family Bank Limited 

37

Standard Chartered Bank Kenya Limited 

17

First Community Bank Limited 

38

UBA Kenya Bank Limited

18

Guaranty Trust Bank (K) Ltd 

39

Victoria Commercial Bank Limited

19

Guardian Bank Limited 

 

 

20

Gulf African Bank Limited 

 

 

21

Habib Bank A.G Zurich 

 

 

 

MORTGAGE FINA NCE INSTITUTIONS

1

HFC Limited

 

 

 

MICROFINANCE BANKS

1

Caritas Microfinance Bank Limited

8

Rafiki Microfinance Bank Limited

2

Century Microfinance Bank Limited

9

KEY Microfinance Bank Limited

3

Choice Microfinance Bank Limited

10

SMEP Microfinance Bank Limited

4

Daraja Microfinance Bank Limited

11

Sumac Microfinance Bank Limited

5

Faulu Microfinance Bank Limited

12

U & I Microfinance Bank Limited

6

Kenya Women Microfinance Bank Limited

13

Uwezo Microfinance Bank Limited

7

Maisha Microfinance Bank Ltd

14

Muungano Microfinance Bank Limited

 

Failed Member Institutions

NO.

INSTITUTION

A)

IN LIQUIDATION

1.

Postbank Credit Ltd.

2.

Trade Bank Ltd.

3.

Middle Africa Finance Ltd.

4.

Pan-African Bank Ltd.

5.

Pan-African Credit & Finance Ltd.

6.

Thabiti Finance Co. Ltd.

7.

Meridien BIAO Bank Ltd.

8.

Kenya Finance Bank Ltd.

9.

Ari Bank Corporation Ltd

10.

Prudential Bank Ltd.

11.

Reliance Bank Ltd.

12.

Trust Bank Ltd.

13.

Euro Bank Ltd.

14.

Prudential Building Society

15.

Daima Bank Ltd.

16.

Dubai Bank Kenya Limited

17

Chase Bank Kenya Limited

18

Charterhouse Bank Limited

B)

IN RECEIVERSHIP

1.

Imperial Bank Limited