Here is a new dawn.....C.S Amb. Hon. Ukur Yatani is joined by KDIC Board as he launched the Revised Deposit Coverage Limit on 1st October 2019.
If you have deposited your money in any of the financial institutions licensed under Central Bank of Kenya, you have no reason to worry.
This follows the unveiling of the revised deposit limit of Ksh.500.000 by the Kenya Deposit Insurance Corporation KDIC, at an elaborate ceremony preside over by the acting Cabinet Secretary for the National Treasury ambassador Ukur Yatani. The unprecedented cover per depositor that takes effect from July next year, is not only aimed at cushioning bank depositors against loses in the unlikely event of bank failure, but also discouraging unconventional methods of banking.
Through the revised deposit coverage that will see up to 98% of bank accounts fully covered, the premier insurer will also seek to foster financial stability in the country in conjunction with industry regulator, Central Bank of Kenya as well as other safety net players.
Speaking during the launch that brought together over 200 delegates from across the industry as well as the KDIC Board of Management, C.S Hon. Yatani lauded KDIC for its achievements, urging the Corporation to institute a robust mechanism that will cushion depositors and ensure their lives are not disrupted. “Implementation of a robust surveillance system will greatly reduce bank failures. After a careful consideration of various economic factors, KDIC with the approval of National Treasury has reviewed the deposit coverage limit which I have the pleasure to launch, from Ksh.100, 000 to Ksh.500, 000 effective July 2020, making it among the highest in Africa,” the C.S affirmed.
He added that the government shall continue to focus on reforms aimed at ensuring a vibrant and globally competitive financial sector, calling on the KDIC to enhance its mitigation measures through deposit insurance and incentives for sound risk management. “In addressing some of the challenges attributed to the county’s rapid adoption of technology and in fulfilment of public policy objective, the government recently reviewed the mandate of the KDIC from a ‘Pay-box’ plus to risk minimizer, giving the Corporation powers of early detection and interventions to further protect the depositors’ interests, ”he observed.
Putting heads together....KDIC Chairman Mr. Teko Lopoyetum (Left) CEO Mr. Mohamud Mohamud (Right) consult with CBK Chairman Mr. Mohammed Nyaoga shortly after the event.
KDIC Chairman Mr. James Teko Lopoyetum who welcomed the CS, assured that the Corporation shall continue to execute its mandate of risk minimization and prompt resolution of problem banks, in order to minimize the adverse impact of bank failures. Mr.Lopoyetum said: “The Risk Based Premium Model introduces fairness and equity in charging premium; a process that supports the increased Coverage Limit that we are proudly launching today. KDIC shall continue to play its mandated role in ensuring minimal disruptions of banking business and in the unlikely event of a problem, that prompt resolution is undertaken.”
On his part, the Corporation’s Chief Executive Officer Mr.Mohamud Ahmed Mohamud, promised that the Corporation shall continue being proactive in its endeavor to serve Kenyans. “The policies and guidelines that we come up with are aimed at not only ensuring that the Corporation, as a safety net player, keeps abreast with the dynamics in the financial sector, but also promotes public confidence in the Banking sector. This is achieved by maintaining a stable and efficient deposit insurance system to support the financial sector,” said Mr.Mohamud who spoke shortly before KDIC’s Chairman.
Among notable personalities who attended the event were Central Bank of Kenya Chairman Mr. Mohammed Nyaoga, Governor and also KDIC board member Dr. Patrick Njoroge, the chairman of the Kenya Bankers Association and board member Dr. Habil Olaka, senior officers from the Ministry of National Treasury and Planning as well as various industry captains.
Others were representatives of various safety-net players, regulators, universities, Senior Management and other staff of KDIC.