The Kenya Deposit Insurance Corporation (KDIC) expanded its safety net in 2024, with the Deposit Insurance Fund (DIF) rising 19% to KSh 248.9 billion from KSh 209.2 billion in 2023.
- •Banking sector deposits declined 1.6% to KSh 5.75 trillion in December 2024, down from KSh 5.84 trillion a year earlier.
- •If a bank fails, each depositor is guaranteed repayment of up to KSh 500,000, which currently covers 99.4% of accounts.
- •Kenya’s KSh 822.7 billion or 14.3% is below the International Association of Deposit Insurers’ 20% benchmark.
Deposit Insurance and Coverage
| Metric | 2023 | 2024 | % Change |
|---|---|---|---|
| Total Deposits | 5839.8 | 5749.2 | -1.6% |
| Total Insured | 857.8 | 822.7 | -4.1% |
| Fund Balance | 209.2 | 248.9 | +19.0% |
- •Effective cover, measured as fund balance to insured deposits, rose from 24.4% in 2023 to 30.3% in 2024.
- •Risk exposure dropped from 85.3% to 69.7% as the fund expanded and average balances fell.
| Metric | 2023 | 2024 |
| Effective Cover (%) | 24.4 | 30.3 |
| Risk Exposure (%) | 85.3 | 69.7 |
| Protected Deposits (%) | 14.7 | 14.3 |
| Accounts Protected (%) | 99.3 | 99.4 |
Reforms and Trust Account Guidelines
In 2025, KDIC issued trust account guidelines. These rules define how trust balances are aggregated, require separation of trustee and personal funds, and mandate accurate record-keeping for beneficiaries. The reforms improve transparency, reduce misuse, and align Kenya’s framework with international practice.
| Metric | 2023 | 2024 | % Change |
| Total Accounts | 107.0 | 116.1 | +8.5% |
| Fully Covered Accounts | 106.2 | 115.3 | +8.6% |
Despite stronger ratios, the share of total deposit values insured declined from 15.7% in 2022 to 14.3% in 2024. This shows continued exposure to large depositor risks and underscores the need for further reforms to meet global standards.
