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How Customer Bank Deposits Are Protected By Government
How Customer Bank Deposits Are Protected By Government
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How Customer Bank Deposits Are Protected By Government

Money254 Team
June 1, 2021

Picture a nightmare scenario in which you wake up, attack your cup of tea with a renewed energy to make it a great day only to check your favorite social media platform on your way to work and learn that your trusted bank is going down, along with your lifetime savings.

A million questions run through your sweaty head. What happens next? Is this my end? Were all the energy-draining years at work now worthless following the death of your trusted bank?

If you have ever wondered what would happen to your sweat-stained life savings when your bank found itself facing closure, this article will equip you with all the details regarding the fate of your money as per the relevant laws in Kenya.

The anticipation of such a scenario is what resulted in the formation of the Kenya Deposit Insurance Corporation (KIDC) under the Kenya Deposit Insurance Act, 2012.

Basically, the statutory institution protects depositors against the loss of all their deposits or bank balance in the unlikely event of a bank failure.

Think of KIDC as a confidence booster in regards to your level of trust with your preferred banker, as it guarantees payment of your insured deposit.

Challenges presented by banking crises and bank failures in the country has seen KIDC serving as a safety net for your deposits for over three decades.

How To Claim For Your Deposits Following Bank Failure

Technically referred to as ‘lodging a claim’, KIDC provides a platform through which you can start the process of getting your money back in the unforeseen event of a bank failure.

All you need to do is simply head to and scroll down to the ‘Lodge a Claim’ section found on the bottom of the page under ‘Quick Links’.

Click on the ‘Lodge a Claim’ tab and you will be then redirected to a new page where a a proof of debt claim form (PDF Format) is provided.

Download the PDF document and fill in the information as per the instructions provided.

You can then take the filled out document to KIDC offices located on the 17th Floor at the UAP Old Mutual Towers, Upper hill, Nairobi.

Alternatively, you could send it via mail using the following address -P.O. Box 45983-00100,Nairobi, Kenya, or send it via email to

It is important to note that for deposits above Ksh 500,000, you will be required to attach a sworn affidavit with a Commissioner of Oaths.

What Documents are Required to Lodge a Claim for Your Deposit Following Bank Failure?

To successfully apply to recover your funds, individuals as well as companies are required to attach the documents highlighted below.

For individual depositors, the following documents are required:

  • Copy of ID or Passport
  • Copy of PIN certificate

For companies, the following documents are required:

  • Copy of certificate of incorporation.
  • Letter of Authority to make the claim signed by the authorized signatories as per the mandates held by the institution.
  • Copy of IDs of the authorized account signatories
  • Copy of PIN Certificate for the Company

What Type of Bank Accounts are Covered by KIDC?

The statutory body covers the following account types:

  • Current Accounts
  • Savings Accounts
  • Fixed Deposit Accounts
  • Foreign Currency Deposits

Is There a Limit to The Amount of Money You Can Recover?

KDIC is mandated to provide insurance cover for deposit accounts up to a maximum of Ksh 500,000 per depositor of a member institution/bank.

Where a depositor has more than one account in a bank, all the accounts are consolidated and paid up to a maximum insured sum of Ksh 500,000.

How to Recovers Deposits in Excess of Ksh.500,000

According to KIDC, deposits in excess of Ksh 500,000 is paid as liquidation dividend after the liquidator has recovered sufficient funds from the sale of the bank’s assets and recovery of debts.

How Long Does it Take to Recover Your Deposits Once Claimed?

The duration of payment when it comes to processing such a claim is two years from the date of commencement of the first payment.

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