Kenya Deposit Insurance Corporation
| Agency overview | |
|---|---|
| Formed | 2012 |
| Jurisdiction | Government of Kenya |
| Headquarters | Nairobi, Kenya |
| Agency executive |
|
| Parent agency | Central Bank of Kenya |
| Website | www |
The Kenya Deposit Insurance Corporation (KDIC) is a Kenya government corporation providing deposit insurance to depositors in Kenyan banks and deposit-taking microfinance institutions. The KDIC was created by act of parliament in May 2012.
At the time KDIC was established in 2012, it was an integral part of the Central Bank of Kenya, the country's central bank and banking regulator. The law also established the Deposit Insurance Fund (the Fund), replacing the Deposit Protection Fund. KDIC, by law is mandated to administer the Fund, by collecting contributions for the Fund from member institutions; and holding, managing, and applying the Fund.
The KDIC also is mandated to receive, liquidate, and wind up institutions for which it is the designated receiver or liquidator, a function previously overseen by the Central Bank of Kenya. The KDIC Act mandates the Central Bank to appoint the KDIC as the sole and exclusive receiver of a member institution when (a) the institution's obligations to creditors exceed its assets (b) deliberately violates a regulatory or supervisory order (c) fails to provide necessary access to inspectors or lacks general transparency (d) is unable to meet any of its financial obligations, either now or in the near future (e) engages in activities that violate any of the country's laws.
In 2014, the law was amended and KDIC became separated from the Central Bank. KDIC collects a flat rate fee of 0.15 percent of all deposits from each member institution, adjustable at the discretion of KDIC. It also collects an additional fee based on the risk-adjusted percentage of their total deposit liabilities during the previous twelve months as calculated by KDIC.
As at June 2016, KDIC has been called in to intervene, three times, by the Central Bank of Kenya, when member financial institutions fell foul of Kenya's banking laws and regulations, during the previous twelve months.
KDIC's headquarters are located at 1st Floor, CBK Pension House, Harambee Avenue, in Nairobi, Kenya, capital and largest city.
Coordinates: 01°17′21″S 36°49′30″E / 1.28917°S 36.82500°E
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