Wednesday, May 29, 2024
Home > Counties > Embrace saving culture, Kenyans told

Embrace saving culture, Kenyans told

The Kenya Deposit Insurance Corporation (KDIC) has launched the Well Enabled Training Programme to shed more light on the importance of deposit insurance and promote a saving culture in the country.

The training targeted mostly banks, microfinance institutions, and mortgage companies that were invited to the event to showcase their services to guests.

Speaking during the launch, the Principal Secretary (PS) for the National Treasury, Chris Kiptoo, said that the event was dedicated to bringing financial stability through two basic growth pillars: promoting a saving culture and perfecting deposit insurance mechanisms.

“We need to focus on savings, and even as we have them, we need to make sure that they are under perfect mechanisms to ensure we protect them,” Kiptoo advised.

The PS stated that the government is keen on ensuring there is a strong financial system in place, hence the two-day discussion looking at the critical holder of individual depositor saving habits and the assurance of the depositor’s professional position in the financial system.

“President William Ruto has on many occasions emphasised the need to focus on savings,” Kiptoo said, stressing that the president’s vision is to ensure that matters concerning savings are addressed from the bottom of the pyramid in our society.

Kiptoo noted Kenya has achieved national levels of financial prosperity in Africa; hence, it is crucial to ensure there is security for these funds by safeguarding them.

Keeping in mind that the country’s saving rate is still low, the PS disclosed the saving rate in the country to average 12 per cent, which is low compared to the average of Africa’s saving rate, which is at 17 per cent; hence, calling up on the various stakeholders and experts in attendance to make sure savings are promoted.

He at the same time congratulated the KDIC for its job in safeguarding depositors, enhancing public confidence in the banking system, and promoting the stability of the international system.

According to Kiptoo, there are mandates that the institution should adhere to by having smooth service delivery, including the administration of the deposit insurance scheme fund that the institution happens to adhere to.

“I am happy to know that the funds have been managed diligently and recorded consistent growth over the last thirty years of the existence of the institution,” Kiptoo expressed.

Secondly, on the mandate of risk minimization, the PS considered KIDC to be the top depositor insurance worldwide and therefore urged the institution to work closely with the Central Bank of Kenya to undertake early detection and protection mechanisms to minimise the risk of bank failure.

“I am informed that the corporation has implemented a risk-based premium assistance model in line with global best tactics,” Kiptoo revealed, adding that this approach is supposed to act as an incentive to banks, upon which they will be further guided.

Meanwhile, the PS said that the government will launch its plan soon, wherein in the next five years they will be focusing on including low levels of investment and savings in the country, of which the KDIC will be of good help to them.

By Juma Nalami

Leave a Reply