In recent years, the importance of deposit insurance in promoting financial stability and protecting depositors has become increasingly recognized. In Kenya, the Kenya Deposit Insurance Corporation (KDIC) plays a crucial role in promoting financial stability and protecting depositors through its deposit insurance scheme.
This state corporation was established under the Kenya Deposit Insurance Act, 2012 (KDI Act, 2012) and is responsible for administering the Deposit Insurance Fund (DIF), which provides compensation to eligible depositors in the event of the failure of a member institution. In this article, we will explore the functions and leadership of KDIC, as well as its contact details for those who require more information.
Functions of Kenya Deposit Insurance Corporation
The functions of Kenya Deposit Insurance Corporation (KDIC) are as follows:
- Deposit Insurance: KDIC provides deposit insurance to depositors of member institutions. In case of the insolvency or failure of a member institution, KDIC guarantees the repayment of eligible deposits up to a certain limit.
- Membership Supervision: KDIC is responsible for supervising the membership of institutions eligible for deposit insurance. This includes monitoring the financial health and risk profile of member institutions to ensure that they comply with the necessary standards.
- Resolution of Failed Institutions: KDIC is responsible for the orderly resolution of failed member institutions. This involves managing the assets and liabilities of failed institutions in a way that minimizes losses to depositors and other stakeholders.
- Risk Management: KDIC monitors and assesses risks to the stability of the financial system in Kenya, with a view to promoting financial stability. This includes identifying and analyzing emerging risks and developing strategies to mitigate them.
- Collaboration with Regulatory Bodies: KDIC works closely with other regulatory bodies in the financial sector, such as the Central Bank of Kenya, the Capital Markets Authority, and the Insurance Regulatory Authority, to ensure that the financial system in Kenya is stable and secure.
- Advocacy and Education: KDIC promotes public awareness and understanding of deposit insurance and financial stability issues. This includes providing information and education to the public on the importance of financial stability and the role of deposit insurance in protecting depositors.
- Management of Deposit Insurance Fund: KDIC manages the Deposit Insurance Fund (DIF), which is funded by member institutions’ contributions. The DIF is used to provide compensation to eligible depositors in the event of the insolvency or failure of a member institution.
Kenya Deposit Insurance Corporation Leadership
The Kenya Deposit Insurance Corporation (KDIC) is led by a Board of Directors appointed by the President. The Board of Directors is responsible for providing strategic direction and oversight of the corporation’s activities.
The current Chairperson of the Board of Directors is Hannah Muriithi.
The day-to-day operations of KDIC are overseen by the acting CEO, who is currently Mrs. Hellen Chepchumba Chepkwony. The CEO is responsible for implementing the policies and decisions of the Board of Directors and managing the staff and resources of the corporation.
KDIC also has a senior management team that includes the General Manager, Finance and Administration, and the General Manager, Resolution and Deposit Protection. The senior management team works closely with the CEO to ensure that KDIC fulfills its mandate of promoting financial stability and protecting depositors in Kenya.
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To be a premier deposit insurance scheme.
To promote public confidence in the financial system through deposit insurance, risk management, and timely resolution.
KDIC Head Office Contacts
Head Office: 17th Floor UAP Old Mutual Towers, Upper hill
Postal Address: P.O. Box 45983-00100,Nairobi, Kenya.
Tel: +254 709 043 000