The step taken by the Kenya Deposit Insurance Corporation, raising the amount payable to depositors in the event that a bank collapses, will go a long way in instilling customer confidence.
In the past, this amount was limited to only Sh100,000, meaning that those whose money was held up were at serious risk of sliding into illiquidity at short notice. Considering that majority of depositors have less than Sh1 million in their accounts, raising the amounts payable in the event of a collapse will shield more Kenyans from needless pain.
