Regulatory Alerts2020-07-01
Added · Updated
Kenya Deposit Insurance (Amendment) Act, 2013
The Kenya Deposit Insurance (Amendment) Act, 2013 introduces critical regulatory mechanisms for the management of problem institutions, including defined protocols for 'exclusion and transfer' processes and adherence to the 'lesser cost rule' to mitigate financial risk. The legislation grants the Kenya Deposit Insurance Corporation enhanced powers to resolve bank failures, including the ability to prioritize its own subrogated claims and utilize the Fund for resolution processes while establishing strict governance over its leadership. Furthermore, the Act mandates operational timelines for deposit payments to affected depositors and empowers the Central Bank to provide technical assistance during instances of systemic risk.