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KDIC: The Government Agency Securing Kenyans’ Bank Deposits

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Millions of Kenyans own bank accounts and make deposits or receive salaries for those who’ve been employed. Banks are considered safe spots for storing money. However, do you know that banks can collapse with your deposits? If so, what happens in that case?

KDIC Mandate and Functions

That is where the Kenya Deposit Insurance Corporation (KDIC) comes in. KDIC is a state agency established under the Act of Parliament, KDI Act Cap. 487C, whose mandate is to provide deposit Insurance for member institutions (banks), Liquidate, and Wind up troubled banks.

In fulfilling its mandate, KDIC protects depositors against the loss of all their deposits or bank balances in the unlikely event of a bank failure by providing payments of insured deposits. This is important as it helps enhance depositors’ confidence, in that customers get the reassurance that their money is safe and they can still get it back even in the unfortunate event that a bank goes under.

When talking to Kenyans, a good number will tell you they don’t save money in financial institutions because they fear losing it. Still, this reassurance enhances confidence while inspiring a saving culture.

In addition to providing deposit insurance, the corporation also provides incentives for sound risk management and promptly resolves problem banks to mitigate any failure proactively.

Brief History of KDIC and Member Institutions

KDIC Was Founded in 1985 as the Deposit Protection Fund Board (DPFB). It officially started operating on 1 September 1986 and received its first case on 31 January 1993, in which it was required to pay off protected depositors and undertake a liquidation process.

Since then, it has evolved from DPFB into KDIC and grown in membership. According to the KDI Act Cap.487C, KDIC membership is compulsory and comprises all institutions licensed as deposit-taking institutions and regulated by the Central Bank of Kenya.

As of October 2024, KDIC membership stood at thirty-seven (37) commercial banks, one (1) mortgage institution, and fourteen (14) microfinance banks.

Bank Crises in Kenya

KDIC was established in response to challenges presented by banking crises and has operated for over thirty years. Before and after its establishment, the country has experienced several bank crises. Below is a breakdown of some of the instances:

Crises in 80s

The first banking failure in Kenya was recorded in 1984 when two locally owned institutions collapsed and were liquidated by the official receiver. Unfortunately, depositors were not compensated, and as such, they lost their money, and the public lost confidence in financial institutions.

In 1989, the country faced its second banking setback, where nine financial institutions suffered liquidity strains, leading to a systemic crisis. The nine financial institutions were Jimba Credit Corporation Limited, Union Bank of Kenya Limited, Kenya Savings and Mortgages Limited, Estate Finance Company of Kenya Limited, Estate Building Society, Business Finance Company Limited, Citizen Building Society, Nationwide Finance Company Limited, and Home Savings and Mortgages Limited.

Liveblog - Self-declared Gen Z President MORARA KEBASO accused of beating his wife and being a serial cheat – A former neighbour spills the beans

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Vocal political activist Morara Kebaso portrays himself as a principled leader and a responsible family man but according to his former neighbour, he reportedly subjected his wife to physical abuse and cheated on her with multiple women.

Morara’s former neighbour in Rongai reached out to popular social media personality Goerge iQ Watson and exposed his rogue behaviours.

Morara’s former neighbour, who sought anonymity, claimed that he witnessed him allegedly beating up his wife when she was pregnant.

Back then, Morara was living in a hostel, having started a family at a young age.

While it is not clear whether he has changed, Morara’s character has been a subject of discussion on social media, with some labeling him a conman. Lawyer Miguna Miguna has been warning Kenyans not to trust Morara, claiming that he is a government project and an NIS mole used to distract Kenyans from real issues affecting the country

    Raila causes a storm in india after linking prime minister NARENDRA MODI to the scandalous Adani group – just take a look!!

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    raila in india

    prime Minister Raila Odinga’s endorsement of Adani Group Limited’s takeover of Jomo Kenyatta International Airport (JKIA) and other key infrastructure has sparked widespread backlash, both within Kenya and on the international stage.

    Raila narrated how India’s Prime Minister Narendra Modi introduced him to Gautam Adani and organised a Kenyan delegation’s visit to benchmark Adani Group’s projects in the Gujarat State.

    While narrating Adani’s close ties with Modi’s administration, Raila exuded confidence in Adani Group’s ability to deliver its mandate in the Public-Private Partnership deal reached with President William Ruto’s administration.

    Odinga’s remarks have triggered strong reactions from Indian leaders, including congressmen and political analysts, who have criticized the country’s Prime Minister for unfairly prioritizing Adani Group over other local companies.

    In a brief statement, Indian lawmaker Pawan Khera claimed that Adani Group has dominated critical projects in India since Prime Minister Narendra Modi’s regime took power.

    According to the Congressman, Adani has dominated the country’s headlines, particularly India’s foreign policy for the last ten years.

    “This has been the story of India’s foreign policy for the last 10 years; By Adani, for Adani, of Adani,” commented Khera. 

    The lawmaker’s remarks were echoed by political analyst Shailesh Kushwaha, who criticized Prime Minister Modi, asserting that Gautam Adani’s company has been the biggest beneficiary of Modi’s foreign visits.

    Kushwaha further claimed that most projects presided over by Adani outside India, whether in the neighbourhood or further afield, were announced within months of the Prime Minister’s visit to the foreign country or during a meeting with other Heads of State.

    “Adani Group is getting the biggest benefit from Modi ji’s foreign visit. 

    “Most Adani projects outside India, whether in the neighbourhood or further afield, were announced within months of Modi visiting the country or meeting its head of state,” commented the Indian political analyst.

    “Prime Minister Modi is working as Adani’s agent in foreign countries – first, it was disclosed by a Sri Lankan government official, now by Kenya’s former Prime Minister,” claimed Ashok Swain, a Professor of Peace and Conflict Research at Uppsala University in Sweden

    TSC Advertise JSS Internship Positions

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    The Teachers Service Commission (TSC) has advertised 20,000 JSS Internship Positions.

    TSC has encouraged qualified and trained teachers with Technical Learning Areas/Subjects with TSC Registration Numbers to apply.

    The Internship period will be for twelve (12) months with a monthly stipend of Ksh20,000.

    Application deadline is 4th November 2024.

    Raila Claims ‘Head of Government’ Abroad, VIP Pass Found in Dumpsite

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    It has recently come to light that ODM leader and veteran opposition figure Raila Odinga has been presenting himself as the head of government of Kenya during his overseas travels for high-profile meetings.

    This revelation occurred after Raila’s VIP pass was discovered in a landfill in a foreign country, where he attended a prominent meeting.

    The pass was inscribed with “Raila Odinga. ” head of government kenya,”.

    Raila has been making numerous trips abroad following his agreement with William Ruto.

    He has accompanied Ruto to several high-profile meetings, including the United Nations General Assembly held in New York last month.

    However, Raila continues to assert that he is not a part of Ruto’s government.

    Watch The Video Below:

    Salasya Blasts Ruto Over Misplaced Priorities After Gachagua’s Impeachment

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    President William Ruto has submitted a preliminary objection in response to a petition concerning the impeachment of Rigathi Gachagua. Through attorney Adrian Kamotho, Ruto asserts that the court lacks jurisdiction to hear and adjudicate the petition, claiming it constitutes an abuse of the court process.

    “The petition filed in this honorable court exhibits a clear disregard for the law and constitutes an abuse of due process, and therefore cannot be entertained or resolved by this honorable court,” states the court documents.

    The president has been identified as the fifth respondent in the case, while the impeached deputy president is listed as an interested party.

    President Ruto, while requesting the court to dismiss the case, argues that civil proceedings cannot be initiated in any court against the president or the individual performing presidential duties during their tenure concerning actions taken or not taken under the Constitution of Kenya 2010.

    Petitioners David Mathenge, Peter Kamotho, Grace Mwangi, Clement Muriuki, and Edwin Kariuki have approached the court to prevent Deputy President-nominee Kithure Kindiki from taking office. They criticized the Senate impeachment process, questioning the legality of the entire procedure. The petitioners therefore requested the court to suspend Kindiki’s planned swearing-in until the issue was resolved by the court.

    Ruto Disputes Gachagua Impeachment Jurisdiction

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    President William Ruto has submitted a preliminary objection in response to a petition concerning the impeachment of Rigathi Gachagua. Through attorney Adrian Kamotho, Ruto asserts that the court lacks jurisdiction to hear and adjudicate the petition, claiming it constitutes an abuse of the court process.

    “The petition filed in this honorable court exhibits a clear disregard for the law and constitutes an abuse of due process, and therefore cannot be entertained or resolved by this honorable court,” states the court documents.

    The president has been identified as the fifth respondent in the case, while the impeached deputy president is listed as an interested party.

    President Ruto, while requesting the court to dismiss the case, argues that civil proceedings cannot be initiated in any court against the president or the individual performing presidential duties during their tenure concerning actions taken or not taken under the Constitution of Kenya 2010.

    Petitioners David Mathenge, Peter Kamotho, Grace Mwangi, Clement Muriuki, and Edwin Kariuki have approached the court to prevent Deputy President-nominee Kithure Kindiki from taking office. They criticized the Senate impeachment process, questioning the legality of the entire procedure. The petitioners therefore requested the court to suspend Kindiki’s planned swearing-in until the issue was resolved by the court.

    Kuria Slams Gachagua for Ignoring Karua’s Ruto Warning

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    Senior State House Advisor Moses Kuria has criticized impeached Deputy President Rigathi Gachagua, urging him to take responsibility for disregarding valuable counsel.

    According to Moses Kuria, certain leaders from the Mt. The Kenya region had cautioned Gachagua and his allies against collaborating with President William Ruto without first obtaining a political party.

    However, they disregarded the advice and are now facing the consequences and expressing regret.

    Kuria referenced prominent political figures from the region who, as he noted, cautioned Deputy President Rigathi Gachagua against participating in the elections without a political party, including Martha Karua and Mwangi wa Iria.

    “Dr. “Thuo Mathenge, No Wanguku, William Kabogo, Peter Munya, Mwangi wa Iria, and Martha Karua cautioned you against participating in elections without a political party, but you did not heed their warnings,” Kuria stated.

    Kuria urged Gachagua and other leaders who ignored his advice to abandon their hopes of remaining in government as they transition to the opposition.

    According to Kuria, Deputy President nominee Kithure Kindiki will seamlessly assume his duties.

    He also advised them to no longer expect his support in opposing the government regarding the exclusion of certain prominent individuals from the region from senior positions within the United Democratic Alliance (UDA).

    “You fought us like a monitor lizard. ” Now you want us to join you in lamenting the opposition. Forget it! We have moved on.

    “Prof. “Kithure Kindiki is the Deputy President of the Republic of Kenya,” he added.

    Ruto-Gachagua Rift: Failed Reconciliation and Impeachment Uncovered

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    According to a section of Mt. Kenya’s senators, President William Ruto, and his former deputy, Rigathi Gachagua, experienced significant disagreements that rendered collaboration impossible.

    Before voting on the impeachment, it has been reported that there were clandestine meetings discussing the efforts to impeach the removed deputy president and the strained dynamics within the presidency.

    Lawmakers from both the National Assembly and the Senate reportedly held separate meetings with President Gachagua and Interior Cabinet Secretary Kithure Kindiki, who has been nominated to succeed the ousted Deputy President.

    Reports suggest that former Deputy President Rigathi Gachagua faced an ultimatum, as some leaders from Mt. Kenya pressured him to resign following unsuccessful reconciliation attempts.

    During a broadcast on Inooro TV, Senators Karungo wa Thangwa, John Methu, and Tabitha Karanja disclosed that the unification efforts involved both politicians and senior clerics.

    “Anyone who has spoken with Ruto will confirm that the President did not wish to discuss Gachagua. ” Even the bishops, including the head of the ACK Church, were informed that discussions would not occur until after the impeachment, stated Senator John Methu.

    “Those orchestrating the impeachment are urging us to advise Gachagua to resign, allowing him the opportunity to compete in 2027 and also to benefit from the privileges of a former deputy president,” detailed Senator Karungo Wa Thangwa.

    Despite separate meetings with Gachagua, Kindiki, and Ruto, the leaders remained unclear about the underlying reasons for the rift between the president and his deputy. “I met separately with both the President and Rigathi Gachagua. ” “I listened to them, and in my own judgment, I concluded that their political bromance was irretrievable,” Senator Tabitha Karanja revealed.

    Those supporting Gachagua have maintained that his impeachment was a politically motivated maneuver executed unlawfully and with significant animosity toward him.

    “When we pass a new law, the Speaker takes up to a month to have it gazetted. ” “But this impeachment matter was being conducted in haste,” Methu noted.

    “The president is required to nominate a deputy within 14 days. ” Parliament has a maximum of 60 days to evaluate the nominee. In total, the constitution allocates 74 days. “Who are you to accomplish all this in two days? ” Senator Karungo wa Thangwa questioned.

    According to reports, some senators were allegedly paid up to Ksh 10 million to impeach Gachagua. Nonetheless, a segment of lawmakers asserted that they exercised sound judgment and remained resolute on the issue.

    “Many cast their votes to safeguard their positions in parliament, their businesses, and due to financial considerations. ” “If Senator Tabitha is truthful, she can reveal that a significant amount of money was provided to senators to impeach Gachagua,” Methu alleged.

    These allegations arise as the former Deputy President is anticipated to appear before the Directorate of Criminal Investigations (DCI) following his statement on Sunday regarding plots against him.

    Liveblog - Detectives arrest 3 suspects who broke into a house in Westlands and robbed a South Sudanese national of over Ksh 3.1 Million and expensive electronics and jewellery

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    Kilimani detectives have arrested three suspects linked to a burglary in which electronic items, USD 24,500, and other valuables were stolen from a house in Westlands, Nairobi, a month ago.

    The suspects—Lenah Khamatioli (28), Ian Kavaya (28), and Peninah Mutola (32)—were traced to their hideout in Kawangware, where newly acquired items believed to be the crime’s proceeds were also found.

    In the incident which took place on September 24, the house owner (a South Sudanese national) arrived at her home located along Rahpta Road Westlands to find her house girl missing, and along with her USD 24,500, an iPhone 15, a Samsung Z Flip and several pieces of jewellery.

    She reported the theft at the DCI Kilimani offices where investigations were launched

    After weeks of forensic trail, detectives moved in and arrested the said suspects, in whose possession were found a range of brand new items including a Boxer motorcycle (Reg No. KMGN 840N), a 55-inch Vitron TV, Hanmac microwave, HP laptop, NNix cooker oven, 6kg Pro gas cylinder, a five-sitter sofa, a mattress, two watches, and three brand-new Samsung A50 phones.

    They were all seized.

    Also confiscated for investigation was an agreement for the purchase of a parcel of land in Kapkangani, Nandi County valued at Kshs 423,000.

    The suspects remain in custody as further search for possible accomplices and the remaining stolen items continues.

      Liveblog - Ruto Must Go” slogans rent the air as Juja DCC read the President’s speech during Mashujaa Day – The ground is tough look! 😅

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      Juja Deputy County Commissioner had a difficult time reading the President’s speech during Mashujaa Day Celebrations after the residents chanted ‘Ruto Must Go’ slogans to express their dissatisfaction with Ruto’s leadership.

      In the video, the residents are seen interrupting the Deputy County Commissioner’s speech by chanting ‘Ruto Must Go’ in unison as some walk out of the venue.

      The area chief tried to calm them down in vain, forcing the Deputy County Commissioner to pause the speech to bring order.

      The video comes days after Former Deputy President Rigathi Gachagua was impeached.

      Juja is considered one of Gachagua’s strongholds.

        Liveblog - RUTO’s Government has attempted to kill me twice – GACHAGUA reveals how he escaped death in Kisumu and Nyeri

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        Impeached Deputy President Rigathi Gachagua has accused the President of oppressing him, claiming that he has broken the agreement they made prior to taking office in 2022.

        In a press briefing following his discharge from Karen Hospital, where he was being treated after falling ill last week, Gachagua expressed his disappointment, stating that he had placed his trust in Ruto, only to be betrayed.

        He further claimed there were two attempts to assassinate him before the impeachment was tabled in parliament.

        “I don’t feel safe. On August 30th undercover police agents in Kisumu entered my room and one of them tried to poison my food but we detected it and we were able to escape. I was supposed to be killed through poisoning.”

        “On September 3rd in Nyeri, NIS officers came to Nyeri and tried to poison food belonging to me and Kikuyu elders. I reported the matter to NIS and asked the officers assigned to my office to leave.

        “After attempts to assassinate me failed, this impeachment motion was hatched,” Gachagua claimed.

          Cry for justice as politician’s only daughter is found murdered at Biafra Estate in Thika

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          Nominated Kirinyaga MCA Lucy Njeri is mourning following the brutal murder of her daughter Seth Njeri.

          The 23-year-old’s body was discovered in a rented room in Biafra estate, Thika, on October 14, 2024, by her friend, Favour Mwende.

          The MCA called on the Directorate of Criminal Investigations (DCI) boss Mohamed Amin to bring to book suspects involved in the murder of her daughter.

          She claimed that investigators at the Thika sub-county Criminal Investigation offices have made little to no progress on the case, despite more than a week passing since the incident occurred.

          Seth was the MCA’s only child.

          Thika sub-county police commander Lawrence Muchangi confirmed the tragic incident and assured that the case was being taken seriously and investigations are underway.

          According to sources, one of the students who was with Seth on the fateful day she was murdered is in custody.