East Africa Financial Safety Net Players Meet in Mombasa for Crisis Management Workshop

East Africa Financial Safety Net Players Meet in Mombasa for Crisis Management Workshop

Top financial experts from East Africa converged in Mombasa for a five-day workshop aimed at building capacity in financial crisis management and preparedness. Hosted by the Kenya Deposit Insurance Corporation (KDIC), the event brought together delegates from the Ministry of National Treasury and Economic Planning, central banks and deposit insurance agencies from across the region, aimed at enhancing preparedness in handling potential financial crises.

In her opening remarks, Mrs. Hannah Muriithi, Chairperson of KDIC’s Board of Directors, emphasized the importance of effective crisis management and preparedness in the region’s financial sector. “Crises in the financial sector have been a source of serious disruptions, causing sharp declines in asset prices, reduced market liquidity, and widespread uncertainty,” she noted.

The Chairperson stressed the need for cross-border collaboration and information sharing as financial institutions expand across multiple jurisdictions. She further encouraged delegates to actively participate in simulation exercises designed to test crisis management strategies and responses.

“By embracing these exercises, we can build more resilient organizations, better equipped to navigate the challenges of a financial crisis,” Mrs. Muriithi added, as she officially opened the workshop.

The workshop, organized in collaboration with the East Africa Community Monetary Affairs Committee (EAC MAC), seeks to strengthen the region’s ability to manage financial shocks in an increasingly complex global environment. It is part of the ongoing activities under the EAC-MAC convergence criteria.

Participants were drawn from Kenya, Tanzania, Uganda, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo.

Mrs. Hellen Chepkwony, Chief Executive Officer of KDIC, welcomed the delegates, acknowledging the significance of regional cooperation in financial stability. “This workshop reflects the collective commitment of East African partner states to strengthen our financial systems and build robust frameworks to manage financial crises effectively,” she stated.

Mrs. Chepkwony highlighted the long-standing collaboration between East African nations, pointing to the March 2015 Memorandum of Understanding on the supervision of financial institutions as a foundation for the region’s joint efforts.

Discussions focused on emerging issues in crisis management, featuring simulation exercises on failure of a large cross-border financial institution. Through the exercise, participants identified best practices for managing such crises in real-world scenarios.

During the workshop, KDIC reaffirmed its commitment to future partnerships and capacity-building efforts that will safeguard the region’s financial stability.

ENDS.