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The Kenya Deposit Insurance Corporation(KDIC)’ has announced payments to depositors and creditors in collapsed Dubai Bank, Euro Bank, and Kenya Finance Bank as the State moves closer to winding up the lenders.
According to KDIC, this announcement comes after a successful recovery process and sale of assets from the three banks under liquidation.
These latest additional payments for the three institutions will now translate to 97, 93 and 92 per cent cumulative payments of claimants of Euro Bank Limited, Kenya Finance Bank Limited, and for Dubai Bank Limited respectively.
Addressing the press, KDIC Chief Executive Officer Mohamud A. Mohamud assured that the state agency will continue to dutifully discharge its resolution mandate in line with the provisions of the KDIC Act for the benefit of depositors and creditors.
“This payment is a demonstration of the Corporation’s commitment to foster financial stability in the country, by ensuring the disfranchised depositors and creditors of the collapsed institutions receive their money as and when adequate funds are accumulated from the recoveries made out of the assets taken over from the institutions,” said Mohamud.
The payments will be made over a period of one year from the date they are declared.
Depositors and creditors will be duly informed on how to lodge the claims through notices that will be published in the print media and KDIC platforms.
Mohamud further revealed that KDIC is currently overseeing the liquidation process of 19 institutions which are at different stages of the process.
“KIDC will continue strengthening the existing collaboration with other safety net players in the country, to avert any bank failure in the country through proactive and timely interventions,” added Mohamud.
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