Judicial Collaboration Will Enhance Bank Resolution Strategies

In a notable gathering aimed at refining bank resolution strategies, the Chief Executive Officer of the Kenya Deposit Insurance Corporation (KDIC) Mrs. Hellen Chepkwony, has underscored the critical importance of collaboration with the Judiciary.

In a speech read on her behalf by Eunice Kitche - Oduor, the Corporation’s Director of Legal and Corporation Secretary, Chepkwony commended the Judiciary for its dedication and achievements over the years, recognizing its pivotal role in upholding the rule of law.

The remarks were made during a workshop, organized by the Kenya Judiciary Academy, bringing together Judges of the Court of Appeal, Court of Appeal Registrars, CoA Legal Researchers, stakeholders, where KDIC team led the participants through dialogue in legal complexities of bank resolution.

Providing insights into KDIC's mandate, CEO Chepkwony outlined the KDIC's responsibilities, including the provision of a deposit insurance scheme for customers of member institutions. She emphasized KDIC's unwavering commitment to safeguarding depositors' interests, particularly during times of financial distress within the banking sector.

Detailing the bank resolution process, the CEO explained how KDIC assumes responsibility for managing distressed banks under the oversight of the Central Bank of Kenya (CBK). She highlighted the Corporation's efforts to prioritize depositors' interests by facilitating the recovery of outstanding debts for their benefit.

Recognizing the Judiciary's crucial role in adjudicating matters related to bank resolution, the CEO emphasized the need for seamless collaboration between KDIC and the Judiciary. She stressed that such partnerships were essential for navigating the complexities of bank resolution effectively.

The workshop was also attended by KDIC’s Directors David Irungu (Bank Resolution) and Paul Manga  (Risk and Bank Examination)