Kenya Deposit Insurance Corporation
KDIC Learn/Module 4/The Resolution Process
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Module 4 · Topic 2

The Resolution Process

What Is Resolution?

"Resolution" is the process by which regulators manage the failure of a financial institution in an orderly way — to minimise disruption to the financial system and protect depositors. KDIC is Kenya's resolution authority for failed deposit-taking institutions.

  • Step 1: Early Warning — CBK identifies problems and engages the institution
  • Step 2: Corrective Action — The institution is directed to address the issues
  • Step 3: Resolution Triggers — If the institution cannot recover, the CBK triggers resolution
  • Step 4: KDIC Appointment — KDIC is appointed as receiver/liquidator under the KDI Act
  • Step 5: Asset Management — KDIC takes control of assets and liabilities
  • Step 6: Depositor Payout — KDIC reimburses insured depositors from the DIF

Resolution is designed to be swift and orderly. KDIC's goal is to reimburse insured depositors as quickly as possible once resolution is triggered.

Why Do Banks Fail?Next Topic

All Topics in This Module

1Why Do Banks Fail?2The Resolution Process3The Claims Process for Depositors4Protecting Yourself as a Depositor