ADVOKS GLOBAL · KENYA
Kenya Deposit Insurance Act
27. Contributions by institutions
Edition: 2022-12-31 · In force
27. Contributions by institutions
(1)An institution licensed by the Central Bank shall contribute to the Fund such annual amount, and at such times, as the Corporation may determine:Provided the Corporation shall consider the risk profile of an institution in the determination of the contribution.(2)The Corporation shall serve on every institution a notice specifying the amount and the period, which shall not be later than twenty-one days after the date of service of the notice, within which the amount shall be paid into the Fund.(3)The amount of contribution to the Fund under this section shall not be less than three hundred thousand shillings nor exceed 0.4 per cent of the average of the institution’s total deposit liabilities during the period of twelve months prior to the date of the notice served under subsection (2):Provided that for institutions that have been members for less than twelve months, the amount of deposits shall be prorated for the number of months that the institutions have been in operation.(4)Where it appears to the Corporation that the affairs of an institution are being conducted in a manner detrimental to its own interests or to the interests of its depositors, the Corporation may increase the contributions of that institution beyond the prevailing rate prescribed by the Cabinet Secretary.(4A)In the event the Fund does not have sufficient monies to meet the tasks specified in paragraph (a) of section 23 of this Act, the Corporation shall appropriate from future contributions to set off unpaid insured deposits, and may resort to other sources of funding allowed under the Act.(5)An institution which, for any reason, fails to pay its contribution to the Fund within the period specified in a notice issued under subsection (2) shall be liable to pay to the Corporation a penalty interest charge not exceeding one-half per cent of the unpaid amount for every day outside the notice period on which the amount remains unpaid.(6)The Corporation shall not accept any contribution by an institution if reduced or otherwise adjusted on the basis of any claim by the institution against the Corporation.