The Kenya Deposit Insurance Corporation (formerly Deposit Protection Fund Board) is a significant player in the financial sector as it provides a safety-net for the savings, banking and payments systems in the Republic of Kenya.
KDIC is a statutory institution established under the Kenya Deposit Insurance Act, 2012 whose mandate is to provide a deposit insurance scheme for customers of member institutions and to provide incentives for sound risk management and generally promote the stability of the financial system
KDIC plays the role of protecting depositors against loss of all their deposits in case of a bank failure, by providing payments of insured deposits thereby ensuring depositors remain confident enough to continue keeping their savings within the banking and payments system. The Board was established in response to challenges presented by banking crises and bank failures in the country and it has proven its worth in the over twenty years of its existence.
The main functions of KDIC are to:
- Provide a deposit insurance scheme for customers of member institutions
- Resolve problem banks in order to mitigate any failure
- Work in close collaboration with Central Bank of Kenya, in conducting bank surveillance and where warranted engage in problem bank resolution.
- Hold, manage and apply funds levied as contributions from member institutions, and compensate insured depositors
- Wind up operations of insolvent institutions in respect to which the Board is appointed as the liquidator
To be a premier deposit insurance scheme.
To promote public confidence in the financial system through deposit insurance, risk management and timely resolution.