KDIC CEO Advocates for Confidence-Building Communication During Resolution Events at the Inaugural Africa Insurance Resolution Conference hosted by Policyholders Compensation Fund (PCF)

Kenya Deposit Insurance Corporation (KDIC) was proud to be represented by our Chief Executive Officer, Mrs. Hellen Chepkwony, during the Inaugural Africa Insurance Resolution Conference, themed "Strengthening Insurance Sector Resilience Beyond Failure: Resolution Policy & Practice." Mrs. Chepkwony was invited as a guest speaker to share insights on a pivotal topic: Crisis Communication: Maintaining Public Confidence During Resolution Events.

In her address, Mrs. Chepkwony emphasized that resolution is a public trust issue. How communication is handled during financial distress can either restore or erode confidence, not only in individual institutions but in the broader financial system.

“When institutions fail, confidence must not. That is the role of clear, transparent, and timely communication,” she noted. “KDIC’s experience in managing the resolution of troubled institutions has shown that people need information they can trust.”

Key Messages from our CEO:

• Combating Misinformation in the Age of Social Media:
  Mrs. Chepkwony emphasized the increasing risk posed by viral social media rumors during financial crises. She underscored the need for real-time monitoring and proactive response strategies to counter misinformation before it fuels panic, which might lead to disruption and loss of confidence in the financial sector.
• Guiding Principles in Crises Communication:
  KDIC’s communication framework is anchored in four pillars:
  Timeliness, Transparency, Consistency, and Accuracy. These principles ensure stakeholders receive reliable information.
• The Power of Trustworthy Communication:
  At the core of resolution success is public trust. KDIC advocates for crisis communication approaches grounded in credibility, clarity, and consistency. These approaches are essential in maintaining financial stability and public reassurance during turbulent times.
• Harnessing the Power of AI for Enhanced Crises Management:
  In a world where AI is revolutionizing the financial sector, safety net players also need to take advantage of this, but in a cautious manner. Artificial Intelligence presents an opportunity to automate updates, identify sentiment trends, and improve stakeholder engagement.
• Cross-Sector Collaboration is Key:

Mrs. Chepkwony noted the importance of strong collaboration between the safety-net players in the financial sector, the media, and other stakeholders to ensure coordinated messaging during resolution events.

• Public Awareness is Preventive Communication:
  KDIC continues to prioritize public awareness campaigns that educate depositors and the general public on the Corporation’s mandate and processes. Awareness, she noted, reduces fear and confusion when financial institutions encounter distress by informing and educating the people that they have an institution that protects their deposits in the unlikely event that the financial sector experiences distress.

As an institution mandated to protect depositors and enhance financial system stability, KDIC's participation in the Africa Insurance Resolution Conference reaffirmed its commitment to regional dialogue and capacity-building efforts that strengthen crises readiness.

Mrs. Chepkwony’s contribution to the conference emphasized KDIC’s leading role in the resolution communication strategy, demonstrating how clear and confident communication can be a stabilizing force even during moments of institutional failure.

As KDIC continues to evolve its strategies in step with emerging risks and technologies, we remain focused on what matters most - protecting depositors and preserving public trust in Kenya’s financial system.