KDIC Deposit Insurance: How Much of Your Bank Money Is Protected in Kenya

Updated 8 November 2026

KDIC deposit insurance protects up to KSh 500,000 per depositor at each member bank or microfinance bank in Kenya. If you hold several accounts at the same bank, they are added together and paid as one claim up to that limit. The cover is paid only when the Central Bank of Kenya places the bank in liquidation and the Kenya Deposit Insurance Corporation (KDIC) is appointed liquidator. Depositors pay nothing for it; member banks pay the premiums.

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Checked on 8 November 2026 against KDIC’s deposit insurance page, its FAQs, its member institutions page and “Is your bank deposit protected?”.

Contents: The limit · What is covered · What is not covered · Joint and trust accounts · When KDIC pays · Planning · FAQ

KDIC deposit insurance limit: KSh 500,000 per depositor per bank

KDIC says the current protection limit is KSh 500,000. The figure was first set at KSh 100,000 when the Deposit Protection Fund was created in 1989 and was raised to KSh 500,000 with effect from 1 July 2020. KDIC says the limit fully covers about 99% of deposit accounts in Kenya, which tells you that most ordinary savers are fully protected while large balances are only partly protected.

The limit applies per depositor per member institution. Two things follow from that wording. First, opening three accounts at the same bank does not give you three limits: KDIC consolidates them and pays one claim of up to KSh 500,000. Second, the limit is separate at each member bank, so money split across different banks is protected separately at each one.

Which accounts KDIC deposit insurance covers

KDIC lists current accounts, savings accounts, fixed deposit accounts and call accounts as covered. Its “Is your bank deposit protected?” page also lists foreign currency deposits and declared trust accounts. Other covered items include a bank draft or certified cheque drawn against a deposit account, and a cheque already in the payment system even if the bank delayed crediting the payee.

KDIC describes the scheme as having 53 members: 38 commercial banks, one mortgage finance bank and 14 microfinance banks. Membership can change after mergers, licensing or liquidations, so confirm that your bank is still a member on KDIC’s site before relying on the cover.

What KDIC deposit insurance does not cover

This is where many savers get caught out. KDIC’s own list of uninsured products includes:

• balances above the protected limit;
• money market funds and other mutual funds, unit trusts, stocks and shares;
• digital currencies and cryptocurrencies;
• Government of Kenya securities such as Treasury bills and bonds;
• debentures issued by banks, governments or companies;
• SACCO deposits;
• deposits held at institutions that are not KDIC members, and deposits not payable in Kenya;
• annuities, repurchase agreements, interbank placements and interbank transactions.

So a money market fund, a SACCO account and a Treasury bill each sit outside this scheme. They carry their own rules and risks, which is why our MMF vs savings account comparison treats them as different products. KDIC says member banks must tell depositors when a deposit-like product is not eligible for insurance.

Joint accounts and trust accounts

KDIC treats a joint account as separate from each holder’s individual account. It assumes each joint holder owns an equal share, and the joint balance is insured up to KSh 500,000 in aggregate. Your personal savings account at the same bank is a separate claim.

For trust money, KDIC says a deposit held by a trustee for each beneficiary is treated as a separate deposit where the trustee acts for two or more beneficiaries. It is also separate from the beneficiary’s own deposits at that bank. The account must be declared and designated as a trust account, with beneficiaries declared when it is opened and updated over time.

When KDIC pays: receivership vs liquidation

KDIC explains bank failure in three stages:

1. Receivership. The bank is under management while its problems are assessed. KDIC says no protected payment is made at this stage, because the bank may recover.
2. Liquidation. Once CBK places the bank in liquidation and KDIC is appointed liquidator, depositors are paid the protected amount of up to KSh 500,000, subject to complete documents.
3. Winding up. The bank is dissolved after its assets are sold and the proceeds are shared among depositors and creditors.

Anything you hold above the limit is not lost automatically. KDIC says balances above the protected amount are paid as assets of the failed bank are recovered, but the amount and timing depend on those recoveries.

How to plan around the KDIC deposit insurance limit

If you hold more than KSh 500,000 in cash, KDIC deposit insurance gives you a simple rule: protection is counted per bank. Practical steps:

• Add up every account you hold in your own name at each bank, including fixed deposits and foreign currency accounts.
• Keep in mind that a joint account is counted separately from your personal accounts.
• Confirm each bank is a current KDIC member.
• Remember that MMFs, SACCO savings and Treasury bills are outside the scheme, whatever their returns.

Spreading money across banks is about deposit protection, not returns. Compare yields separately, for example in our fixed deposit rates by bank and best banks in Kenya guides.

KDIC deposit insurance FAQ

How much does KDIC deposit insurance cover?

Up to KSh 500,000 per depositor at each member bank or microfinance bank. Several accounts at the same bank are combined into one claim.

Does KDIC deposit insurance cover SACCO savings?

No. KDIC lists SACCO deposits among uninsured products. SACCOs are regulated separately.

Are money market funds covered by KDIC deposit insurance?

No. Money market funds, unit trusts, shares and Government securities are all excluded.

Do I pay for KDIC deposit insurance?

No. Member banks pay the annual premium into the Deposit Insurance Fund.

When is the KSh 500,000 paid?

Only after CBK places the bank in liquidation. KDIC says it does not pay during receivership.

What happens to money above KSh 500,000?

KDIC says it is paid as the failed bank’s assets are recovered, so it may be partial and slower.