Kenya Deposit Insurance Corporation
KDIC is a statutory institution established under the Kenya Deposit Insurance Act, 2012 (KDI Act, 2012). The Corporation is mandated to provide a deposit insurance scheme for customers of member institutions, to provide incentives for sound risk management and generally promote the stability of the financial system and prompt resolution. History. The Corporation was an integral part of Central Bank of Kenya (CBK), the country's bank regulator, prior to its establishment and enhancement of KDIC's mandate in 2012. 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. KDIC is also 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 KDI Act, 2012, mandates the Central Bank of Kenya, to appoint 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 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. Staffing. KDIC  is in the process of populating its entire staff structure that currently stands at 49 employees. The Corporation hopes to have attained a staff complement of 160 by 2022. Recent interventions. In June 2016, CBK mandated KDIC to intervene, when member financial institutions fell foul of Kenya's banking laws and regulations, during the previous twelve months. Location. KDIC's headquarters are located at UAP Old Mutual Tower, Upper Hill, Nairobi.