Kenya Deposit Insurance Corporation (KDIC) is about to become a state corporation after splitting from the Central Bank of Kenya.
KDIC has been a department of CBK. The transitioning process into a state corporation has been approved by the Treasury. Treasury CS Ukur Yatani extended KDIC CEO Mohamud Ahmed contract for 3 years from February 2020.
Already, KDIC moved its operations to a new office block in UAP OLD Mutual Towers in Upper Hill, Nairobi. In addition, there has been the phasing out of CBK staff since 2019 as hiring of new staff is ongoing.
The firm hopes to recruit a workforce of 160 within the next two years as part of the 2018-2023 strategic plan. Moreover, it will buy land and build its own offices and buy vehicles.
KDIC was established in 2012 with the intention of providing insurance scheme for banks’ customers against loss of their deposits in case the bank collapses. Kenya’s banking sector has witnessed turbulent times with the collapse of Chase and Imperial banks.
Since its establishment, KDIC increased the compensation for depositors to Ksh500,000 ($5000) from Ksh100,000 ($1000) to safeguard customer deposits.