This archive report was first published on 9 October 2019.
Published on October 9, 2019, Kenya, Uganda, and Tanzania have taken steps to enhance the stability of their banking sectors by increasing deposit insurance coverage.
The Kenya Deposit Insurance Corporation (KDIC) has raised the insurance coverage for depositors to KSh 500,000, up from KSh 100,000. This decision was made after a study by the KDIC and the US Treasury on reviewing the insured deposits.
According to the KDIC, 90% of total deposits in Kenya have balances of less than KSh 100,000, while 1% have balances above KSh 1,000,000.
Uganda's Finance Minister, Mr. Matia Kasaija, has also announced plans to increase the deposit insurance limit from USh3 million (KSh 84,000) to USh10 million (KSh280,000) before the end of the year.
In Tanzania, the Deposit Insurance Board has increased the amount of protected deposits from TSh 500,000 (KSh 22,000) to TSh 1,500,000 (KSh68,000). In Rwanda, the Guarantee Fund of Rwanda protects deposits of up to RwF 500,000 (KSh56,000) per depositor.
