diff --git a/incubator/kafka/Chart.yaml b/incubator/kafka/Chart.yaml
index 7cf28b24c4..e78275af69 100755
--- a/incubator/kafka/Chart.yaml
+++ b/incubator/kafka/Chart.yaml
@@ -2,7 +2,7 @@ apiVersion: v1
 description: Apache Kafka is publish-subscribe messaging rethought as a distributed
   commit log.
 name: kafka
-version: 0.16.2
+version: 0.16.3
 appVersion: 5.0.1
 keywords:
 - kafka
diff --git a/incubator/kafka/README.md b/incubator/kafka/README.md
index d34da48e69..304e2faae6 100644
--- a/incubator/kafka/README.md
+++ b/incubator/kafka/README.md
@@ -85,7 +85,7 @@ following configurable parameters:
 | `podAnnotations`                               | Annotation to be added to Kafka pods                                                                                                                                     | `{}`                                                               |
 | `podLabels`                                    | Labels to be added to Kafka pods                                                                                                                                     | `{}`                                                               |
 | `envOverrides`                                 | Add additional Environment Variables in the dictionary format                       | `{ zookeeper.sasl.enabled: "False" }`                              |
-| `configurationOverrides`                       | `Kafka ` [configuration setting][brokerconfigs] overrides in the dictionary format                                                                                       | `{ offsets.topic.replication.factor: 3 }`                          |
+| `configurationOverrides`                       | `Kafka ` [configuration setting][brokerconfigs] overrides in the dictionary format                                                                                       | `{ "confluent.support.metrics.enable": false }`                          |
 | `secrets`                                      | Pass any secrets to the kafka pods. Each secret will be passed as an environment variable by default. The secret can also be mounted to a specific path if required. Environment variable names are generated as: `<secretName>_<secretKey>` (All upper case) | `{}` |
 | `additionalPorts`                              | Additional ports to expose on brokers.  Useful when the image exposes metrics (like prometheus, etc.) through a javaagent instead of a sidecar                           | `{}`                                                               |
 | `readinessProbe.initialDelaySeconds`           | Number of seconds before probe is initiated.                                                                                                                             | `30`                                                               |
diff --git a/incubator/kafka/templates/_helpers.tpl b/incubator/kafka/templates/_helpers.tpl
index 22846779d7..7d67a7f0cb 100644
--- a/incubator/kafka/templates/_helpers.tpl
+++ b/incubator/kafka/templates/_helpers.tpl
@@ -52,6 +52,14 @@ else use user-provided URL
 {{- end -}}
 {{- end -}}
 
+{{/*
+Derive offsets.topic.replication.factor in following priority order: configurationOverrides, replicas
+*/}}
+{{- define "kafka.replication.factor" }}
+{{- $replicationFactorOverride := index .Values "configurationOverrides" "offsets.topic.replication.factor" }}
+{{- default .Values.replicas $replicationFactorOverride }}
+{{- end -}}
+
 {{/*
 Create chart name and version as used by the chart label.
 */}}
diff --git a/incubator/kafka/templates/statefulset.yaml b/incubator/kafka/templates/statefulset.yaml
index 31478113e3..9e658b0a1d 100644
--- a/incubator/kafka/templates/statefulset.yaml
+++ b/incubator/kafka/templates/statefulset.yaml
@@ -158,6 +158,8 @@ spec:
               fieldPath: metadata.namespace
         - name: KAFKA_HEAP_OPTS
           value: {{ .Values.kafkaHeapOptions }}
+        - name: KAFKA_OFFSETS_TOPIC_REPLICATION_FACTOR
+          value: {{ include "kafka.replication.factor" . | quote }}
         {{- if not (hasKey .Values.configurationOverrides "zookeeper.connect") }}
         - name: KAFKA_ZOOKEEPER_CONNECT
           value: {{ include "zookeeper.url" . | quote }}
diff --git a/incubator/kafka/values.yaml b/incubator/kafka/values.yaml
index 307a2461a1..36281c68bc 100644
--- a/incubator/kafka/values.yaml
+++ b/incubator/kafka/values.yaml
@@ -169,7 +169,6 @@ podLabels: {}
 ## ref: https://kafka.apache.org/documentation/#brokerconfigs
 ##
 configurationOverrides:
-  "offsets.topic.replication.factor": 3
   "confluent.support.metrics.enable": false  # Disables confluent metric submission
   # "auto.leader.rebalance.enable": true
   # "auto.create.topics.enable": true