The Capital Markets Authority (CMA) and the Kenya Deposit Insurance Corporation (KDIC) have failed to strike a common deal on a compensation mechanism for bondholders in the event of a bank failure ahead of next month’s budgetary proposals.
The CMA has for several months been seeking support from the KDIC and the Central Bank of Kenya (CBK) on a clear reimbursement policy for debt held under custodial arrangements such as pension schemes by collapsed banks.
