Kenya Deposit Insurance Corporation (KDIC) is warning that switching the compensation model from per customer to per account and increasing insured deposits above Sh500,000 would encourage recklessness among lenders and trigger more bank failures.
KDIC chief executive Hellen Chepkwony said in an interview with the Business Daily that the corporation’s latest review shows the coverage is adequate for the sector and that a further raise would lead to a moral hazard.
