The East African
Monday March 15 2021
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The Kenya Deposit Insurance Corporation’s (KDIC) Chief Executive, Mohamud Ahmed Mohamud, has been elected the new Chairman and President of the African committee of deposit insurers.
Mr Mohamud’s unanimous endorsement now puts Kenya at the helm of the African Regional Committee (ARC) of the International Association of Deposit Insurers (IADI) for the next two years.
He takes over from his Nigerian counterpart, Mr Ibrahim Umaru of NDIC, following the expiry of his term.
The appointment marks a sign of confidence that global deposit insurance schemes have in East Africa’s nascent deposit insurance schemes and the reforms that the KDIC has put in place towards resolving problem banks and preventing further bank failures in Kenya.
Bill ups deposit refund in failed banks to Sh1m
Wednesday February 10 2021
By OTIATO GUGUYU
Summary
The Treasury is fighting a bid to change the law to allow depositors in collapsed banks receive compensation of up to Sh1 million for each account.
A draft Bill set for debate in Parliament seeks to increase the payout for each account in a fallen bank from the current cap of Sh500,000 per depositor.
The compensation was in July last year increased to Sh500,000 from Sh1 million, marking the first rise in 30 years.
The low compensation had exposed wealthy savers to higher losses in the event of bank closures because the refund was not adjusted to take into account changing economic realities over the three decades.
How State averted fresh wave of bank collapses
Tuesday January 26 2021
By CONSTANT MUNDA
Summary
Most of the historical bank failures have been due to a mix of fraud, political interference, excessive risk-taking and inadequate capital.
Yatani says continuous surveillance of financial institutions had helped in the early detection of shady financial transactions and malpractices and arrest of additional failures.
The government battled major bank scandals behind the scenes last year, staving off a new wave of collapses, Treasury Cabinet Secretary Ukur Yatani has revealed.
Mr Yatani said that continuous surveillance of financial institutions had helped in the early detection of shady financial transactions and malpractices and arrest of additional failures that would have eroded investor confidence and hurt depositors.
THE STANDARD
FINANCIAL STANDARD
Kenya Deposit insurance Corporation CEO Mohamud Ahmed Mohamud. [File, Standard]
Mohamud Ahmed Mohamud is a man on a mission.
The Kenya Deposit Insurance Corporation (KDIC) boss is part of financial sector players ensuring the safety of customer deposits - the lifeblood of the banking sector.
Following the collapse of banks in the 1990s and recently Imperial Bank and Chase Bank that shattered thousands of livelihoods, KDIC, which insures customer deposits, has come out strongly to promote risk management and financial stability in the lending sector.
Mohamud noted that previously, KDIC was largely viewed as a “killer” of banks.
High-risk banks start paying higher premiums from July
Monday January 04 2021
By BONFACE OTIENO
Summary
The KDIC, in collaboration with Central Bank of Kenya and the Treasury, agreed on a new payment model based on the risk-profiles of individual banks.
Kenyan lenders are required to pay the annual deposit insurance premiums in July of every year, but with the extended deadline, the payments will now be due on December 31, 2021.
Banks with higher risks exposures will start paying increased premiums to the Kenya Deposit Insurance Corporation (KDIC) starting July 1 following the expiry of the one-year suspension due to the economic knocks of the Covid-19 pandemic.