The Kenya Deposit Insurance Corporation (KDIC) has lined up further payments for depositors who lost money more than a decade ago following the collapse of Daima Bank, Thabiti Finance Company and Trade Bank.
The claimants who include both insured and uninsured depositors and creditors are due for their sixth, third and second payments respectively with the window running for the next 12 months from Thursday.
KDIC has asked the depositors and creditors of the three banks to complete claim forms.
The payments are expected to include Sh70 million pending as part of insured deposits which are usually paid out from premiums KDIC member institutions pay.
The three banks were placed under liquidation in June 2005, December 1994 and August 1993 respectively.
Combined, the three institutions were placed under liquidation with a total of Sh6.286 billion in deposits with insured deposits making up Sh427 million.
As of June 2021, disclosures by KDIC show the deposits insurer had paid out Sh357 million to cover the insured deposits or a respective 83.6 percent.
This left a balance of Sh70 million, the bulk of which was due to the depositors of Trade Bank or a respective Sh32 million.
At the same stage, KDIC had paid out Sh879 million to the banks’ uninsured depositors and creditors.
Payments to uninsured depositors and creditors are usually sourced from collections accrued by loanees and realisation of securities for delinquent debtors that were charged to the bank.
At the end of the same period, 18 banks, including Chase, Charterhouse, Dubai and Euro Bank, were under liquidation. The 18 banks had cumulative deposits of Sh44.5 billion as of the date of the decision to wind them up.
