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Is your bank deposit protected?


Kenya Deposit Insurance Corporation, (KDIC), is a resolution authority for banks, whose mandate as a risk minimizer is to:

  1. Offer prompt and timely resolution of failed banks
  2. Provide incentives for sound risk management
  3. Provide a deposit insurance scheme to member institutions

The Corporation manages the Deposit Insurance Fund aimed at facilitating the prompt resolution of troubled banks while promoting public confidence in the banking system. KDIC- the successor of the Deposit Protection Fund Board (DPFB), provides a robust and comprehensive deposit insurance scheme and an extra mandate of risk minimization to instil market discipline in risk management.


  1. Deposit Insurance Scheme


To fulfil this mandate, KDIC operates a deposit insurance scheme for its member institutions (banks and microfinance banks). The scheme is funded through an annual payment of premiums by members to a pooled Deposit Insurance Fund (DIF) that is used to resolve a member institution in case of failure. In the event the member institution is placed in liquidation, the Fund is used to compensate depositors their protected funds of up to KES 500,000.


Currently, the scheme has fifty-three (53) members comprising thirty-eight (38) commercial banks, one (1) mortgage finance bank, and fourteen (14) micro-finance banks. The category of deposits covered under this scheme are listed below:

  • Current Accounts
  • Savings Accounts
  • Fixed Deposit Accounts
  • Foreign Currency Deposits
  • Trust Accounts (Account which is declared and designated as a trust account and whose beneficiaries are declared at the point of opening of such bank account, and updated periodically)


  1. How does Deposit Insurance contr