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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Treasury Wavers on Deposit Guarantee as Banks Pursue Debt Recovery - March 2026
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. Members of Parliament have given the Financial Inclusion Fund (Hustler Fund) 14 days to publicly disclose the names of loan defaulters due to increasing concerns over unpaid loans. Separately, Standard Chartered Bank is set to auction assets of the collapsed retail chain Nakumatt Holdings after the firm defaulted on loans exceeding Sh1.6 billion.
