ADVOKS GLOBAL · KENYA
Kenya Deposit Insurance Act
26. Effect of cessation
Edition: 2022-12-31 · In force
26. Effect of cessation
(1)Where an institution ceases to be a member of the Fund under section 25, the institution shall—(a)not assume, hold out or in any other way give the impression that the institution is a member of the Fund;(b)surrender its licence and the Corporation shall notify the institution’s depositors of the termination of its membership in the prescribed manner;(c)not be relieved from its obligations or liabilities to the Corporation that have accrued before the cessation of its membership; and(d)indemnify the Corporation in the event of any payment made by the Corporation to depositors, in respect of such deposits as shall have been transferred or acquired by another institution.(2)Where an institution is obligated to repay to a person any monies that are received or held by the institution, such monies shall be deemed not to constitute part of a deposit for the purposes of deposits insured with the Corporation if the date on which the person acquires his interest in the monies is a date subsequent to the date on which the institution ceases to be a member of the Fund.(3)Any institution which contravenes the provisions of subsection (1) commits an offence and shall be liable to a fine not exceeding five hundred thousand shillings and to a daily penalty not exceeding ten thousand shillings for every day the contravention continues.