Regulatory Alerts2020-07-01
Added · Updated
Kenya Deposit Insurance Amendment Act 2013
The Parliament of Kenya enacted this amendment to the Kenya Deposit Insurance Act 2012, empowering the Deposit Insurance Corporation with enhanced resolution powers and refined governance structures. The legislation codifies key mechanisms such as the "lesser cost rule" and "exclusion and transfer process," while mandating Cabinet Secretary approval for systemic risk interventions, flexible borrowing limits capped at twenty-five percent of the Fund, and a strict thirty-day payout timeline for insured deposits. By clarifying liability ranking during receivership, prioritizing the Corporation's subrogated claims, and enabling irrevocable asset transfers, the Act ensures faster, cost-effective bank resolutions that preserve financial stability and depositor confidence.