Good times for depositors as Central Bank of Kenya unveils new refund plan

Central Bank of Kenya Governor Njuguna Ndung’u.

Central Bank of Kenya (CBK) has announced a radical compensation plan for collapsed institutions that will ensure depositors get decent refunds up from the maximum Sh100,000 guaranteed under the current scheme. The latest initiative is meant to boost confidence in the banking industry and control the resurgence of bank failures that had plagued the industry in the 80s.

Governor Njuguna Ndung’u says CBK’s focus would now be directed to strengthening the deposit insurance design that will add value to the depositors and the financial system in general. He says the proposed measures, which are mainly designed to minimise the depositors’ exposure, include a total review of the depositor insurance coverage, which has remained constant at Sh100,000 for more than two decades.