Kenya To Raise Compensation Limits to Bolster Trust in the Financial Sector
Kenya's regulators to reinforce the Policyholders’ Compensation Fund (PCF) by raising the compensation ceiling to KSh 500,000...
✨ Key Highlights
Kenya is set to increase compensation limits for policyholders and depositors to strengthen trust in its financial sector amidst rising fraud and cyberattacks. This move is part of a broader strategy to enhance safety nets for consumers of financial instruments.
- The compensation ceiling for the Policyholders' Compensation Fund (PCF) will be raised from KSh 250,000 to KSh 500,000.
- The Kenya Deposit Insurance Corporation (KDIC) currently insures 99% of the country's 77.9 million bank accounts, with a limit of KSh 500,000 per depositor.
- Regulators are also considering protections for trust-based accounts like pensions and digital financial products, which are currently outside the framework.
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Read the complete article from The Kenyan Wall Street
Part of the Day's Coverage
CBK Proposes Cutting Mobile Money Fees and Raising Compensation Limits for Depositors - September 2025
The Central Bank of Kenya (CBK) plans to significantly reduce mobile money transaction fees, as detailed in the draft National Financial Inclusion Strategy 2025–2028. The proposal targets a 130% cut by 2028, which would lower charges from Sh23 to Sh10 per transaction. This initiative aims to reignite financial inclusion and broaden participation in the digital economy, addressing a stagnation in new mobile money users. Separately, Kenya is set to increase compensation limits for policyholders and depositors. This move is intended to strengthen trust in the financial sector and enhance safety nets for consumers of financial instruments amidst rising fraud and cyberattacks.
