Regulatory Alerts2021-09-01
Added · Updated
Commencement of the Risk-Based Premium Assessment Model
The Kenya Deposit Insurance Corporation (KDIC) has commenced the implementation of its new Risk-Based Premium Assessment Model for all commercial and microfinance banks. This model aims to incentivize banks to avoid excessive risk-taking and ensure equity in premium assessment by differentiating risks among institutions and assigning premiums based on individual risk profiles. Replacing the previous flat-rate system, it aligns with international best practices and Section 27 of the KDIC Act, 2012, with provisions for regular re-assessment and updates.
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