The Kenya Deposit Insurance Corporation (KDIC) has officially launched a nationwide public participation exercise to reshape the country’s financial safety net. In a public notice released this week, the Corporation invited Kenyans and financial sector stakeholders to review and provide feedback on three critical regulatory frameworks aimed at enhancing the stability of the banking sector.
The move comes as the KDIC seeks to modernize its operations under the Kenya Deposit Insurance Act (2012) and fulfill its constitutional mandate for inclusive governance.
The proposed changes focus on three primary pillars of deposit insurance:
- Risk-Based Contributions: The Draft Kenya Deposit Insurance (Contribution by Institutions) Regulations, 2026, introduces a new formula for how banks and financial institutions contribute to the insurance fund. Rather than a flat rate, contributions will be computed based on an institution’s specific risk profile, incentivizing sound risk management practices across the industry.
- Trust Account Guidelines: For the first time, the KDIC is introducing specific guidelines for Trust Accounts. This framework will govern how these accounts are opened and managed, ensuring that beneficiaries are properly recorded and protected should a financial institution collapse.
- Revised Coverage Limits: Perhaps most significantly for the average saver, the KDIC is proposing a review of the Coverage Limit. This review aims to adjust the maximum guaranteed amount payable to a depositor in the event of a bank failure, potentially increasing the safety cushion for Kenyan depositors.
KDIC has scheduled a series of Town Hall meetings across the country. All sessions are scheduled to run from 9:00 AM to 1:00 PM at the following locations:
- Nakuru: 16th April 2026 (Bantana Hotel)
- Nairobi: 7th May 2026 (Nairobi University – Manu Chandaria Hall)
- Mombasa: 22nd May 2026 (Tononoka Social Hall)
- Kisumu: 4th June 2026 (Tom Mboya Labour College)
- Isiolo: 12th June 2026 (Isiolo Social Hall)
- Garissa: 26th June 2026 (Garissa University)
- Nyeri: 9th July 2026 (Nyeri Culture Center)
How to participate
For those unable to attend the physical meetings, the KDIC has made all draft documents and submission templates available on their official website at www.kdic.go.ke.
The Corporation is accepting written memoranda through multiple channels, including their online feedback portal and via email at stakeholder.engagement@kdic.go.ke. Physical submissions can also be delivered to the CEO’s office at the UAP Old Mutual Tower in Nairobi.
The deadline for all written submissions is 31st May 2026, at 5:00 PM.