- The Kenya Depository Insurance Corporation (KDIC) is a corporation created under The Kenya Deposit Insurance Act, 2012.
- The object and purpose for its establishment under Section 5 is to provide a deposit insurance scheme for customers of member institutions and to receive, liquidate and wind up any institution in respect of which the Corporation is appointed receiver or liquidator in accordance with the Act.
- The KDIC works hand in hand with the Central Bank of Kenya to protect customers of institutions such as Banks which are financial troubles and are unable to remain solvent.
- In the unfortunate event that a bank collapses, customers can be able to recover part of their money from their accounts but subject to a statutory minimum.
- Under Section 28 of the Act, the Amount payable as protected deposit is one hundred thousand shillings 100,000/= or such higher amount as the Corporation may from time to time determine.
- On the 1st of October 2019, the acting cabinet secretary for national treasury, Amb. Ukur Yatani, announced that the KDIC with the approval of the National Treasury has reviewed the deposit coverage limit from Kshs 100,000 to Ksh 500,000 with effect from July 2020.
- This increase if implemented, would be a panacea to the problems many customers face when banks collapse. It will also instill some confidence when such happenings occur since most customers shall have a surety of recovering their monies deposited in their respective Banks.
By Mwangi Emmanuel – Managing Partner
