About KDIC
Overview of KDIC
From our establishment in 1985 to the present day, KDIC's mandate, history, values, and legal foundation.
What KDIC Does
Our Function
KDIC operates as Kenya's deposit insurer and bank resolution authority, underpinned by the Kenya Deposit Insurance Act 2012.
Vision
A reliable, effective deposit insurer and resolution authority.
Mission
To protect depositors and enhance public confidence in the financial system by promoting sound risk management and timely resolution.
Deposit Protection
Promptly reimburse insured depositors — up to KES 500,000 — when a member institution fails.
Financial Stability
Contribute to the stability of Kenya's financial system and maintain depositor confidence.
Resolution Authority
Act as liquidator and administrator for failed deposit-taking institutions under the KDI Act.
Financial Literacy
Promote public awareness of deposit insurance and consumer financial rights across Kenya.
Our Journey
Four Decades of Financial Protection
From the Deposit Protection Fund Board to a modern deposit insurer. Here are the key milestones in KDIC's history.
Establishment of the Deposit Protection Fund Board
The Deposit Protection Fund Board (DPFB) was established under the Banking Act to administer the Deposit Protection Fund, the forerunner of today's KDIC, initially covering commercial banks and licensed non-bank financial institutions.
DPFB Begins Operations
The Deposit Protection Fund Board commenced active operations, formally processing member institution contributions and building the deposit protection fund that would act as a safety net for Kenyan depositors.
Expanded Coverage and Fund Growth
Following a period of bank failures in the late 1980s and early 1990s, the Fund was strengthened and its coverage expanded. The DPFB played a central role in depositor compensation during Kenya's banking sector consolidation.
Kenya Deposit Insurance Act Enacted
Parliament enacted the Kenya Deposit Insurance Act No. 10 of 2012, transforming the DPFB into the Kenya Deposit Insurance Corporation (KDIC) with an expanded mandate, greater operational independence, and stronger resolution powers.
KDIC Becomes Fully Operational
KDIC officially commenced operations as a fully independent statutory body, taking over all functions of the former DPFB and launching new governance structures, risk frameworks, and public awareness programs.
KDIC Recognised as World's Best Deposit Insurer
The International Association of Deposit Insurers (IADI) recognised KDIC as the best deposit insurer in the world, affirming Kenya's commitment to sound deposit protection practices and KDIC's high standards of governance and operational excellence.
Launch of the Differential Premium System
KDIC introduced the Differential Premium System (DPS), a risk-sensitive premium framework that calibrates each member institution's annual contribution based on its risk profile, incentivising sound banking practices across the sector.
Coverage Increased to KES 500,000
In response to the evolving financial landscape and depositor needs, the insured deposit limit was increased, providing stronger protection to the majority of small depositors across Kenya.
Regulations & Publications
Legal Framework
KDIC operates within a robust legal framework. Key legislation and publications governing our operations:
Careers
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