Treasury wavers on plan to lift bank deposit guarantee to Sh1m

Treasury is weighing the effect of increased limit on the economy...

✨ Key Highlights

The National Treasury is reportedly hesitant to approve an increase in the bank deposit guarantee from the current Sh500,000 to Sh1 million per customer, causing uncertainty for depositors.

The proposed increase aims to boost depositor confidence following the collapse of three banks between 2015 and 2016.
The Kenya Deposit Insurance Corporation (KDIC), led by its Chief Executive Hellen Chepkwony, has recommended the revision.
The Treasury is still analyzing the potential economic impact and risks of moral hazard associated with higher deposit protection values.

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