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Module 1 · Topic 1The Establishment of KDIC
From DPFB to KDIC
The Kenya Deposit Insurance Corporation (KDIC) traces its roots to 1985, when the Deposit Protection Fund Board (DPFB) was established under the Banking Act. The DPFB was Kenya's first formal depositor protection mechanism.
In 2012, Parliament enacted the Kenya Deposit Insurance Act (KDI Act), which dissolved the DPFB and created KDIC as a more powerful and independent statutory body with an expanded mandate.
KDIC was established to protect depositors and contribute to financial stability — roles it has carried out since its operational launch under the KDI Act, 2012.
Key Milestones
- 1985 — Deposit Protection Fund Board established under the Banking Act
- 1989 — First depositor payout following a member institution failure
- 2003 — Coverage limit increased to extend protection to more depositors
- 2012 — KDI Act enacted; KDIC replaces the DPFB
- 2013 — KDIC Regulations 2013 gazetted, operationalising the new framework
- 2023 — KDIC launches its Strategic Plan 2023–2028
All Topics in This Module