Payment for Customers who Had Cash in Kenya Finance Bank Announced

The Kenya Finance Bank Limited has announced the sixth payment of to the depositors and creditors.

In a notice on June 26, the Kenya Deposit Insurance Corporation (KDIC), the liquidator, said the payment is meant for creditors and depositors with proved claims.

“Notice is hereby given that the KDIC, in exercise of the powers conferred under Section 55 of the Kenya Deposit Insurance Act, 2012, will commence distribution of the 6th payment to all eligible depositors and creditors of Kenya Finance Bank Ltd (in liquidation) who have proved their claims,” the notice read in parts.

The liquidation agent Dorcas Wanjala announced that all the payments shall be made through Real Time Gross Settlement (RTGS) to the accounts whose details have been provided.

Additionally, Wanjala directed claimants who have not provided their current Bank Account details to furnish the Liquidation Agent with the same.

The details should be availed at the KDIC offices located on the 16th Floor, Old Mutual Tower, Upper Hill Road, Nairobi, between 8.15 am and 5.00 pm from Monday to Friday.

“The claim forms are available on the KDIC website www.kdic.go.ke.The duly filled forms can also be submitted through the email; [email protected],” Wanjala said.

“Claimants are further advised to note that the payment is valid for a period of one (1) year from the date of commencement of payment stated below.”

Kenya Finance Bank Liquidation

Kenya Finance Bank has been under liquidation since 1996 and KDIC had completed payment of over Ksh500 million to its depositors as of March 2022.

In March 2022, KDIC announced payments for depositors and creditors of Euro Bank Ltd, Kenya Finance Bank Ltd and Dubai Bank Ltd all in liquidation after a successful recovery process and sale of assets. 

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The latest additional payments for the three institutions translated to 97% cumulative payments of claimants of Euro Bank Ltd, who will have been fully paid, 93% for Kenya Finance Bank Ltd and 92% for Dubai Bank Ltd.

Former KDIC CEO Mohamud A. Mohamud said the Corporation will make payments to depositors and creditors of troubled banks, in an efficient and effective manner avoiding undue delays that may impair the payments.

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During that time, the Corporation was overseeing the liquidation process of 19 institutions at different stages of the process.

In 2019, KDIC raised the deposit insurance coverage from Ksh100,000 to KSh 500,000 so as to protect depositors and also encourage saving in banking institutions.

The new limit was an improvement to 20%, up from 8% that had been in place since 1989.

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