Kenya Deposit Insurance Corporation (KDIC) chief executive Mohamud Ahmed Mohamud has been given a new three-year contract.
Mr Mohamud’s contract was to end on February 9, 2020 but National Treasury Cabinet Secretary Ukur Yatani has endorsed the board’s decision to extend the term.
“Approval is hereby granted for the renewal of appointment of Mr Mohamud Ahmed Mohamud as the CEO of KDIC for a second term of three years with effect from February 10, 2020,” said Mr Yatani in a letter to KDIC chairman James Lopoyetum.
The new term will keep Mr Mohamud at KDIC until February 2023, which coincides with the end of the State agency’s 2018-2023 strategic plan.
The board had written to Mr Yatani in December last year asking him to give Mr Mohamud a new contract on the basis of KDIC’s performance.
Mr Mohamud has been instrumental in crucial activities of KDIC including the ongoing transition of the organisation from a department of Central Bank of Kenya (CBK) to a state corporation.
KDIC has gained prominence in recent years following the collapse of three banks –Dubai, Imperial and Chase.
Mr Mohamud has worked with CBK on compensation of depositors as well as the acquisition of certain assets and liabilities of Chase Bank by SBM Bank. KCB is also working on a similar deal for Imperial bank.
The extension of his term also comes at a time the entity is preparing to review the coverage limit of depositors’ money from Sh100,000 to Sh500,000 starting July 1.
Kenyans had saved Sh3.56 trillion in banks at the end of October 2019
KDIC, formerly Deposit Protection Fund Board, was established under the Kenya Deposit Insurance Act, 2012 to provide a deposit insurance scheme for banks’ customers against loss of all their deposits in case of a bank failure.