MOMBASA, Kenya, Jul 7 – The Governor of the Central Bank of Kenya has said a Deposit Protection Fund Board (DPFB) Bill has been drafted to create a fully autonomous deposit protection body.
CBK governor Professor Njuguna Ndung’u said the board would protect clients from losing their money with the collapse of financial institutions.
He added that once the DPFB is signed into law, such deposit insurance schemes would play a critical role in looking after investors and their deposits.
Prof Njuguna told a seminar of International Association of Depots Insurers-African Region that several countries on the continent already have in place Deposits Protection Funds.
He pointed out that African countries had in the last few years had a substantial share of collapsed financial institutions. One of the numerous challenges facing the countries in Africa is to provide safety net for depositors in financial institutions that have failed, he said.
He also explained that the enactment of the Bill would contribute to the government\’s fulfilment of the International Association of Deposit Insurers (IADI) requirements.
He asked the participants to appreciate the efforts of IADI In working towards the creation of such schemes in more countries in the region.
Prof Njuguna challenged IADI’s African Regional Committee to enhance its efforts to build capacity within the continent.