Payments To Depositors And Creditors Of Three Institutions In Liquidation

PRESS RELEASE

FOR IMMEDIATE RELEASE.

NAIROBI, 29th March 2022- The Kenya Deposit Insurance Corporation has today announced payments for depositors and creditors of three institutions in liquidation.

The announcement regarding Euro Bank Ltd (in liquidation) Kenya Finance Bank Ltd (in liquidation) and Dubai Bank Ltd (in liquidation) follows a successful recovery process and sale of assets. These latest additional payments for the three institutions will now translate to 97% cumulative payments of claimants of Euro Bank Ltd, who will have been fully paid, 93% for Kenya Finance Bank Ltd and 92% for Dubai Bank Ltd.

Addressing the press at KDIC offices in Nairobi, Corporation Chief Executive Officer Mr. Mohamud A. Mohamud assured that the state agency will continue to dutifully discharging its resolution mandate in line with the provisions of the KDI Act for the benefit of depositors and creditors.
As the country’s sole Resolution Authority, KDIC fosters Financial stability in the Country through;
i. Provision of incentives to banks and Microfinance banks for sound risk management, by levying premiums based on the assessed risk profile of the institution.
ii. Prudent management of the Deposit Insurance Fund.
iii. Prompt resolution of troubled financial institutions (Banks & Micro Finance Banks) to ensure there is no disruption in the Financial system.

When resolving the troubled banks, the Corporation has endeavored to make payments to depositors and creditors, in an efficient and effective manner avoiding undue delays that may impair the payments.
In his address, Mr Mohamud revealed that currently KDIC was overseeing the liquidation process of 19 institutions which are at different stages of the process.

He added that today’s payment is a demonstration of the Corporation’s commitment to foster financial stability in the country, by ensuring the disfranchised depositors and creditors of the collapsed institutions receive their money as and when adequate funds are accumulated from the recoveries made out of the assets taken over from the institutions.
The payments will be made over a period of one year from the date they are declared. Depositors and creditors will be duly informed on how to lodge the claims through notices that will be published in the Print media and also KDIC platforms.

Mohamud observed that the state agency will continue strengthening the existing collaboration with other safety net players in the Country, to avert any bank failure in the country through proactive and timely interventions.
As part of the initiatives to achieve this new focus, the Corporation successfully conducted a one-week regional workshop on Crisis Preparedness and Bank Resolution. The event brought together over 70 participants from across the African region.

END

Mr. Mohamud Ahmed,
CHIEF EXECUTIVE OFFICER.