The Kenya Deposit Insurance Corporation (KDIC) has announced a renewed focus on enhancing its mandate to bolster Kenya’s financial sector stability in the coming year. This follows the unveiling of its new Strategic Plan for the period 2023-2028.
KDIC CEO Hellen Chepkwony outlined the Corporation’s priorities, emphasizing the importance of safeguarding depositors and maintaining financial stability. “We remain steadfast in executing our mandate of protecting depositors while supporting the stability of the financial system,” she stated.
The Strategic Plan identifies four Key Result Areas aimed at transforming KDIC into a more reliable and effective deposit insurer and resolution authority. These areas include Deposit Insurance, Risk Minimization, Resolution of Problem Banks, and Institutional Capacity Development.
One significant development highlighted by Chepkwony is KDIC’s plan to increase dividend payouts to depositors of 19 financial institutions currently under liquidation. She urged affected depositors to reach out for updates on pending payouts, noting that KDIC has already disbursed over Ksh 90 billion to customers affected by past collapses. The agency aims to promptly settle all outstanding supported claims.
“Towards this end, any depositor affected by the collapse of the 19 financial institutions in liquidation is encouraged to reach out to us for updates on pending payouts,” she said.
Chepkwony also revealed that KDIC is considering a review of the coverage limit in 2025, signaling its intent to better align with evolving market conditions and depositor needs. This potential adjustment would mark a significant policy shift, designed to enhance deposit protection for Kenyans and promote greater confidence in the financial system.
By implementing the strategies outlined in the Strategic Plan, KDIC aims to solidify its role as a pivotal institution in Kenya’s financial ecosystem. The plan also underscores KDIC’s commitment to fostering a more resilient financial sector, particularly amid the dynamic and often unpredictable nature of global and local economic landscapes.
As the Corporation moves forward with its ambitious agenda, stakeholders in Kenya’s financial sector will be watching closely. KDIC’s efforts not only promise to provide greater assurance to depositors but also contribute to the long-term stability and growth of the country’s banking and financial systems.
For affected depositors, the message is clear: engagement with KDIC could pave the way for expedited payouts and increased security in an ever-evolving financial landscape.
