KDIC Empowers Staff with Bank Crisis Preparedness Skills

In a rapidly evolving financial landscape, one truth remains constant - preparedness is everything. The Kenya Deposit Insurance Corporation (KDIC) took a step in reinforcing its commitment to financial system stability by equipping members of staff with critical knowledge and skills during a comprehensive Bank Crisis Preparedness and Simulation Workshop.

Held against a backdrop of increasing digital transformation, the training was a powerful reminder of KDIC’s mandate and the responsibility that comes with safeguarding public trust in the banking sector.

KDIC CEO, Mrs. Hellen Chepkwony, set the tone for the workshop with an address to the participants, underlining the strategic importance of the training. “Deposit insurance, risk minimization and bank resolution are the core of what we do. This workshop is part of our continuous journey to remain sharp, responsive and resilient,” Mrs. Chepkwony emphasized.

At the heart of the workshop was an in-depth exploration of the International Association of Deposit Insurers (IADI) Core Principles. These globally recognized guidelines form the foundation of effective deposit insurance systems, providing a reliable compass for countries aiming to enhance depositor protection and uphold public confidence in their financial systems.

Through these sessions, KDIC staff deepened their understanding of how sound deposit insurance frameworks play a vital role in financial sector stability, especially during times of uncertainty.

The workshop also served as a timely refresher on the fundamental role of banks in economic growth. From facilitating transactions and offering credit to mobilizing savings, banks are a lifeline for the economy. As such, ensuring they remain stable and secure, especially during times of distress, is a national priority.

To help staff make this critical connection, the workshop included sessions on bank operations and deposit insurance, exploring how the two intertwine in promoting a healthy, trusted banking system.

Today’s banking world has evolved from a decade ago. With mobile banking apps, digital wallets and AI-driven financial services, the digital revolution is rewriting the rules of engagement.

In that spirit, KDIC staff were brought up to speed on emerging trends in the banking sector, including:

• Digital lending and its impact on credit access,
• Innovations in digital banking, and
• The rise of sustainable banking as institutions seek to align profitability with environmental and social responsibility.

The highlight of the workshop was undoubtedly the crisis simulation segment designed to put theory into practice. Spearheaded by a highly experienced team from the Central Bank of Kenya, led by Dr. Walter Onyino, Director of Information Technology, the simulation challenged participants to respond to a fictional but realistic banking crisis.

Each scenario reinforced a powerful lesson: every crisis is different. There’s no one-size-fits-all solution, and the ability to adapt quickly is what separates a reactive system from a resilient one.

Staff were also taken through intervention measures aligned with KDIC’s risk minimization mandate such as proactive monitoring and collaboration with safety net players. Through joint forums, coordination and early warning mechanisms, participants saw firsthand how strategic partnerships and timely action can prevent minor tremors from escalating into full-blown crises.

True to KDIC’s culture of reflection and growth, the workshop also created space for staff to share challenges and lessons learned from past experiences.

As the workshop concluded, the energy in the room was profound - energized, informed and united by a shared mission. For KDIC, this workshop was about building a culture of preparedness, where every member of staff is equipped, confident and ready to act.