Between 1984-1989 twelve locally owned banks collapsed prompting the government to pass the Banking Act of 1989 which among others tightened requirement for licensing of new banks and non-banking financial institutions. Deposit insurance was made mandatory. To protect depositors and oversee banks liquidation, The government set up a Deposit Protection Fund Board (DPFB) in 1989.
Member banks are required to pay premiums. KDIC has moved from a flat base to risk based premium regime. Kenya joined countries like Nigeria and Uganda in pursuing the risk-based assessment of premiums. This KDIC believes will bring equity given that small and big banks pay the same premium whereas bigger banks have been investing in risk management framework. KDIC is however limited to charging 0.4% total average deposit.
Our Firm prides itself of bringing together a team of advocates who possess a good record in Banking and Financial law.
Our lawyers have appeared in various courts and successfully represented a number of leading banks in cases where their statutory power of sale were being challenged or where adverse ex-parte orders had been obtained against the banks in high value matters. Bad loans are one of the causes of bank runs.
In defending banks, our Managing Partner has defended a number of banks thus helping them remain financially sound and avert bad debts, often due to irrecoverable loans. Additionally, we have considerable experience in securitizations, handling and advising on Charges, Debentures, Grant of Facilities Agreements (Syndicated and other loans)
Contact us Today about Banking & Financial Law
We’re here to help. Email us with any questions or comments and we’ll get you connected to the right person.
Tel:
+254740385712 | +254105602003
Eml:
Adr:
Jumuia Place (Jumuia-1) Lower Level Lenana Road, Hurlinghum
P.O. Box 70209-00400, Nairobi, Kenya.
