The Kenya Deposit Insurance Corporation (KDIC) has announced the commencement of the fourth round of dividend payments to depositors and creditors of Pan African Bank Limited (In Liquidation) and Euro Bank Limited (In Liquidation), both of which were placed under liquidation after failing to meet regulatory requirements.
Thousands of depositors and creditors affected by the collapse of Pan African Bank Ltd and Euro Bank Ltd will begin receiving their fourth round of dividend payments from the Kenya Deposit Insurance Corporation (KDIC) starting 28 May 2025.
In a public notice released on 28 May 2025, KDIC stated it will begin distributing the latest tranche of payments to all verified depositors and creditors of the two defunct banks starting 28 May 2025, in line with Section 55 of the Kenya Deposit Insurance Act, 2012. The 4th dividend payment is part of the liquidation process aimed at reimbursing stakeholders whose funds were frozen following the closure of the institutions.
The notice comes as a significant development in the long-running liquidation of the two banks, which have remained under the management of KDIC following their collapse.
According to the notice signed by Caroline Mutungi, Liquidation Agent for Pan African Bank, and Dorcas Wanjala, Liquidation Agent for Euro Bank, all eligible parties have been urged to collect, complete, and return their account details to KDIC officers stationed at Old Mutual Tower, Upper Hill, Nairobi. The forms can also be downloaded online from www.kdic.go.ke.
The office will be open from 8:00 a.m. to 5:00 p.m., Monday through Friday, to facilitate the claims process. All approved payments will be processed through the Real Time Gross Settlement (RTGS) system directly into the designated bank accounts of verified depositors and creditors.
Both KDIC agents emphasized that the 4th dividend payout is valid for a period of one year from the date of commencement. This means claimants must provide accurate bank account information and collect their dues within the stipulated timeframe.
Pan African Bank Ltd and Euro Bank Ltd are among the financial institutions that collapsed in the early 2000s, leaving thousands of depositors without access to their savings and creditors facing uncertain recoveries.
Euro Bank Ltd was placed under liquidation in 2003 after the Central Bank of Kenya flagged financial irregularities and non-performing assets, triggering panic in the banking sector. It was one of the largest bank failures in Kenya’s history at the time, leading to sweeping reforms in the country’s financial regulatory framework.
Pan African Bank followed suit shortly after, with its own financial instability and insolvency proceedings leading to KDIC’s involvement in recovery efforts. The latest dividend payments are part of KDIC’s ongoing resolution process, aimed at ensuring fair and timely restitution for affected parties.
The collapse of the two banks left thousands of customers and investors in financial limbo. KDIC, tasked with protecting depositors and ensuring stability in the financial system, initiated structured payments to recover and disburse assets from the liquidation.
This marks the fourth round of dividend distribution, indicating that significant progress has been made in resolving the banks’ liabilities and settling claims. Previous payments were made after verification of depositor claims, asset recoveries, and the realization of non-performing loans and securities held by the banks.
The announcement of the latest dividend payment offers a measure of relief to affected depositors, some of whom have been waiting for more than a decade to recover their funds. KDIC’s intervention reflects the institution’s commitment to strengthening depositor protection and reinforcing public confidence in Kenya’s banking sector.
Eligible claimants are encouraged to act swiftly. Failure to submit accurate bank account information within the one-year validity period may result in further delays or forfeiture of their claims.
KDIC has made the forms accessible online, improving ease of access and allowing claimants residing outside Nairobi or abroad to initiate the process remotely. This is part of a broader effort by the corporation to modernize its service delivery in line with digital transformation initiatives.
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