Regulatory Alerts2021-09-01
Added · Updated
Commencement of the Risk-Based Premium Assessment Model
The Kenya Deposit Insurance Corporation has officially implemented a Risk-Based Premium Assessment Model to replace its previous flat-rate system, aiming to incentivize banks to reduce excessive risk-taking and ensure equitable premium assessments. This new model differentiates risk levels among commercial and microfinance institutions by analyzing bank-provided data to assign appropriate premium rates for each risk cluster. The Corporation will conduct regular re-assessments and updates to the model to maintain alignment with evolving economic conditions and international best practices.
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