Mombasa: The 2025 Annual General Meeting and Conference of the International Association of Deposit Insurers – Africa Regional Committee (IADI-ARC), was held in Mombasa, Kenya, with a rallying call that Deposit Insurance Systems must evolve in tandem with the challenges of modern finance.
According to Kenya News Agency, the event, themed ‘Enhanced Bank Resolution Frameworks and the Vital Role of Deposit Insurance Systems in Bank Failure,’ brought together over 100 delegates from across Africa, Asia, the Americas, and Europe. The discussions were timely, as global financial systems continue to grapple with increasing complexity, heightened interconnectedness, and rising systemic risks. Speed, transparency, cross-agency coordination, and public awareness were also highlighted as key components of effective bank resolution.
Presiding over the conference, Principal Secretary for the State Department of National Treasury and Economic Planning Mr. Cyrell Odede emphasized that a resilient financial system is foundational to public trust, economic stability, and national progress. He highlighted the government of Kenya’s steadfast commitment to reinforcing financial stability through policies that protect depositors, especially during periods of economic uncertainty. He noted that maintaining the health of the financial sector is a collective effort involving both fiscal and monetary authorities and stressed that deposit insurance systems are proactive guarantees-a critical component of financial safety nets that preserve confidence even in times of institutional failure.
At the center of this effort in Kenya is the Kenya Deposit Insurance Corporation (KDIC), which was lauded for its leadership, technical capability, and ethical foundation. Mr. Odede praised KDIC for its achievements, including the growth of the Deposit Insurance Fund from Sh105 billion in 2019 to Sh260 billion in 2025, the introduction of a risk-based premium assessment model in 2022 to incentivize sound risk management, deployment of advanced technologies like the Enterprise Data Warehouse (EDW), and ongoing payments to depositors and creditors of failed banks such as Pan African Bank, Euro Bank, Chase Bank, and Kenya Finance Bank.
Speaking on behalf of KDIC, Board Chairperson Mrs. Hannah Muriithi emphasized that the Corporation’s mandate goes beyond mere compensation but encompasses promoting sound risk management, timely intervention, and the resolution of troubled institutions. She highlighted the KDIC Board’s efforts to align operations with international best practices, particularly the IADI Core Principles. Mrs. Muriithi also pointed out that KDIC had significantly strengthened its early warning systems, legal frameworks, and internal governance to ensure agility and operational readiness in the face of financial distress.
Mrs. Hellen Chepkwony, KDIC’s Chief Executive Officer and Deputy Secretary General of the IADI Africa Regional Committee, reiterated the Corporation’s mission of being a proactive risk minimizer. She outlined KDIC’s threefold mandate in providing a deposit insurance scheme for customers of member institutions, offering incentives for sound risk management, and promptly resolving problem banks to mitigate failures early. Mrs. Chepkwony acknowledged the social and psychological toll that bank failures have on ordinary citizens, reinforcing that deposit insurers are the last line of defense against loss of trust and financial despair.
IADI-ARC Chairperson Dr. Julia Clare Olima Oyet commended KDIC for its professionalism in organizing the conference. Dr. Oyet described how the complexity and interconnectedness of modern financial systems increase the urgency for sound supervisory and resolution mechanisms. She warned that even isolated bank failures can trigger systemic risk and undermine public trust. Dr. Oyet announced the inclusion of a new member, the Deposit Guarantee Fund in Central Africa (FOGADAC), which covers six countries, reflecting ARC’s strategic efforts to spread sound deposit insurance practices across the region.
Despite these advancements, only 27 out of Africa’s 54 countries are IADI members. Dr. Oyet highlighted ARC’s collaboration with the African Association of Central Banks (AACB) to advocate for the establishment of deposit insurance systems across the continent. The 2025 conference underscored the centrality of deposit insurance systems in maintaining financial stability and public trust. Through stronger legal mandates, early detection tools, regional cooperation, and strategic reforms, African nations and their global partners are taking steps to safeguard their banking sectors.
The event concluded with a shared commitment: to continue building robust, credible, and responsive deposit insurance frameworks that can endure uncertainty and shield depositors from financial harm.