Remarks by the Chief Executive Officer, Kenya Deposit Insurance Corporation at the 3rd National Credit Convention

REMARKS BY THE CHIEF EXECUTIVE OFFICER, KENYA DEPOSIT INSURANCE CORPORATION AT THE 3RD NATIONAL CREDIT CONVENTION

Theme: Building Connected Credit Ecosystems: Interoperable Platforms for Business Growth

Delivered on behalf of the Chief Executive Officer by Mr. Paul Manga, Director, Deposit Insurance and Bank Surveillance, KDIC

The Governor, Central Bank of Kenya,

The CEO of Metropol CRB,

Distinguished leaders and colleagues from across the financial sector,

Ladies and gentlemen,

Good morning.

Let me begin with a simple proposition: Credit does not exist in isolation.

Every loan has a source. Every deposit has a destination. Every borrower sits within a financial ecosystem. And ultimately, the confidence that allows money to move through that ecosystem is what makes credit possible.

That is why a conversation about credit cannot only be a conversation about lending. It has to be a conversation about trust, information, risk and responsibility.

Kenya's credit market is moving again. By June this year, commercial bank gross loans had risen to about over KES 4 trillion, while deposits stood at approximately to over KES 6.6 trillion. Encouragingly, the ratio of non-performing loans to gross loans had improved to 14.8 percent.

But these numbers should not simply make us comfortable. They should make us more deliberate.

Because the question before us is not simply: How much credit are we creating? It is: Are we creating the right credit, for the right purposes, at the right price, with the right information and with the right safeguards?

And this is where every player represented in this room has a role including Banks, Credit reference bureaus, Fintechs. Regulators, Deposit insurers, Businesses, Consumers. We may sit on different sides of the transaction, but we are operating in the same eco-system.

When information flows within the financial system, risk can be priced. When risk is understood, credit can flow. When credit flows responsibly, businesses grow. And when confidence is protected, savings not only remains but also grows within the financial system. That is the connection we sometimes miss.

From KDIC's perspective, deposit insurance is not simply about what happens when a bank fails. It is about what happens before failure — about market confidence, discipline and stability.

A depositor who understands that their deposits are protected is more likely to trust the formal financial system. A bank that operates in a credible financial ecosystem can mobilise deposits with greater confidence.

And a financial system that can absorb institutional distress without triggering unnecessary contagion creates room for credit to continue supporting the real economy.

So, as we speak about building connected credit ecosystems, we should also be asking how we are connected to risk-management, information-sharing and consumer-protection systems.

Interoperability should not only mean that systems can talk to one another, but it should mean that institutions can share and act on information together. This will mean that the credit market becomes more transparent, more responsive and ultimately more useful to the Kenyan economy.

The opportunity before us is significant and so is the responsibility of all us. We must expand access to financial services including credit without normalizing reckless lending. We must use data inform decisions without compromising consumer trust. We must encourage innovation without creating new forms of systemic risk. And we must protect confidence without protecting inefficiency.

That requires partnership and collaborations especially with:

1. Regulators who understand where the market is going and provide safeguards to protect the financial services users,
2. Institutions willing to share information and implement remedial measures as and when required,
3. Technology service providers who build solutions to responsibly support the market, and;
4. Consumers who are equipped with information to make informed financial decisions.

The future of Kenya's credit market will not be built by one institution. It will be built by the strength of the connections, collaborations, and cooperations between the players in the financial ecosystem.

That is why this conversation matters and KDIC is pleased to be part of it. We will collaborate with the market, to build public confidence and foster financial stability through enhanced depositor protection, prompt resolution and public awareness.

As a deposit insurer, we encourage each player to effectively play their role in the ecosystem, work collectively with all players for benefit for the whole system.

Thank you.

Mr. Paul Manga, Director, Deposit Insurance and Bank Surveillance, delivering remarks on behalf of the CEO, KDIC,  at the 3rd National Credit Market Convention hosted by Metropol .