Why KDIC is increasing amount of protected deposits

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Chase Bank customers mill around the closed bank along Mama Ngina Street in Nairobi. 

Photo credit: File | Nation Media Group

The Kenya Deposit Insurance Corporation (KDIC) commissioned a study last year to review the banking industry’s current deposit coverage limit of Sh500, 000 in a bid to boost public confidence in commercial lenders and enhance financial stability.

This is the second time in four years that the deposit insurer is revising the amount of protected deposits taking into consideration the decline in real worth of money over time to depositors due to inflation.

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