Nairobi: The Kenya Deposit Insurance Corporation (KDIC) has initiated the Well Enabled Training Programme, focusing on enhancing deposit insurance knowledge and fostering a savings culture in Kenya. The programme targets banks, microfinance institutions, and mortgage companies, offering them a platform to present their services.

According to Kenya News Agency, Principal Secretary for the National Treasury, the initiative is part of a broader strategy to achieve financial stability through two main pillars: promoting a saving culture and perfecting deposit insurance mechanisms. Kiptoo emphasized the importance of safeguarding savings and ensuring a robust financial system.

President William Ruto’s vision, as relayed by Kiptoo, highlights the significance of savings, particularly starting from the grassroots level. Kiptoo pointed out that despite Kenya’s financial prosperity in Africa, the national saving rate stands at 12%, lower than the African average of 17%. This disparity underscores the need for concerted efforts to promote savings.

Kiptoo commended KDIC for its role in protecting depositors and enhancing public confidence in the banking system. He noted that KDIC has effectively managed the deposit insurance scheme fund over its thirty-year existence, showing consistent growth.

Furthermore, Kiptoo recognized KDIC’s implementation of a risk-based premium assistance model, aligning with global best practices. This model serves as an incentive for banks to manage risks effectively. The KDIC is also encouraged to work closely with the Central Bank of Kenya to identify and mitigate the risk of bank failures early.

The government, as mentioned by Kiptoo, plans to focus on addressing low investment and savings levels in the country over the next five years, with KDIC expected to play a significant role in this initiative.