
KDIC Hosts Public Participation Forum on 2025 Trust Accounts Guidelines
The Kenya Deposit Insurance Corporation (KDIC) recently held a successful public participation and stakeholder engagement forum. The event focused on the proposed Kenya Deposit Insurance (Trust Accounts) Guidelines, 2025, and engagement on statutory reporting requirements for institutions.
The forum brought together representatives from commercial banks, microfinance institutions, trustees, legal practitioners, and other stakeholders to provide feedback on the draft guidelines that are set to take effect from July 2025.
The proposed guidelines aim to streamline the management and protection of trust accounts held in KDIC member institutions. Key areas covered include the criteria for derived protection for beneficiaries of trust accounts, requirements for opening and operating trust accounts, documentation and reporting obligations for both institutions and trustees, and the framework for claims reimbursement in the event of a bank failure.
Participants were guided through the definitions of key terms such as "trustee," "beneficiary," and "pooled account," and were briefed on how the guidelines will improve transparency, accountability, and data integrity across the sector. The event also addressed the importance of quarterly data reporting and record-keeping to facilitate timely compensation to depositors under the KDIC framework.
KDIC reaffirmed its commitment to inclusive policy development and encouraged participants to submit formal feedback before the guidelines are finalized. The Corporation emphasized that the new framework seeks to enhance depositor protection and uphold public confidence in the financial system.
The event marks a significant step toward strengthening Kenya’s deposit insurance landscape and fostering a resilient and secure financial environment.