CENTRAL BANK OF KENYA
SURVEY ON BANK CHARGES AND LENDING RATES
December 2008
FSD Kenya
Financial Sector Deepening
INTRODUCTION
The main objectives of the Survey on Bank Charges and Lending rates are:
To provide current and potential bank customers with regular, consistent and easily understood information on various
bank charges and lending rates so that they can make informed banking choices.
To encourage customers to utilize this information.
To encourage competition on the basis of price (or value) among commercial banks.
USE THIS BOOKLET
To learn how your banks charges compare with the rest.
How to get the best deal on a bank loan, see page 16.
If you access your money using an ATM find out which banks have largest networks, see page 19.
How to choose a bank account, see page 4.
You can download a copy of this booklet from www.centralbank.go.ke.
CHANGES IN THE MARKET
The last survey results were for 30th June 2008. In the six months to this current data there have been a number of important
changes in the banking sector:
The Banking (Credit Reference Bureau) Regulations, 2008 were published in July 2008. The Regulations which became
operational in February 2009 empower the Central Bank of Kenya (CBK) to license and supervise Credit Reference
Bureaus (CRBs). The Bureaus will collate credit information from banking institutions that will facilitate lending decisions.
The Finance Act, 2008 was assented to on 15th December 2008 amending among other statutes, the Banking Act.
The key changes to the Banking Act related to:
The minimum core capital for banks has been raised from Ksh 250m to Ksh 1 billion by the end of 2012.
Institutions offering savings products based on Islamic banking principles will be required to pay a return on these products.
Section 16 of the Banking Act requires institutions to pay interest on savings accounts so long as the minimum balance is
maintained. Islamic banking principles prohibit the paying or receiving of interest, thus the concept of a return was introduced
to ensure Islamic savings products comply with Section 16 of the Banking Act.
CAUTION
These rankings have been calculated for an average consumer. Actual costs will vary from individual to individual based on
actual usage. The figures presented only offer a guide to the typical cost.
SURVEY ON BANK CHARGES AND LENDING RATES
DECEMBER 2008
SURVEY METHODOLOGY
The survey has two parts
(1) Annual calculation of average user patterns.
(2) Periodic publication of bank charges and lending rates.
The first survey results were for 30th March 2007. This is when the average user patterns were first calculated.
(1) Average usage patterns
A survey of 900 bank customers in Nairobi, Mombasa and Kisumu was conducted to establish the average usage patterns for
savings, current accounts and the average loan size and duration. This average usage pattern has been used to compute the
average cost for a customer using these products.
For current accounts the average usage of the following transactions were determined from the survey:
Number of cash withdrawals
Number of ATM withdrawals
Total ledger entries
Statements and balance enquiries
Cheque & bankers cheques issuance
Card issuance
Retrieval of cheques and bounced cheques
Standing order set up and processing
Transfers (EFT, interbank etc.)
Bills payment
Other elements
(2) Bank charges and lending rates
Commercial banks make regular returns on interest rates, fees and charges to the Central Bank. Using these figures and the number
of transactions which the average user makes in a month, we can readily calculate the average cost of using the service for each
bank. These are the figures presented in this booklet.
DECEMBER 2008
SURVEY ON BANK CHARGES AND LENDING RATES
HOW TO CHOOSE A BANK ACCOUNT
Different banks offer different types of accounts and focus on different types of clients. You should try to shop around to make
sure you get the best value for money. Before opening an account you may want to visit a number of banks and talk to
the staff. Some of the questions that you may want to answer are listed below. You should start by thinking about your needs.
Do you just need somewhere to keep money to meet your daily living expenses? The most appropriate account
is probably either a transaction or a current account. The primary difference between these two types of account is usually
that a current account offers a cheque book. These types of account generally allow you ready access to your money. Charges for
these accounts are typically made per transaction, such as a withdrawal. However some banks also offer bundled products which
have a fixed monthly account fee which includes a number of transactions for the month. Depending on how much you use your
account this can be a cost-effective option.
Do you need to store and build up money safely for the future? Think about using a savings or deposit account.
These accounts will usually earn you interest. As a result of a change in the law, banks no longer charge fees on savings
accounts. However there are likely to be restrictions on how much money you must keep in the account or when withdrawals
can be made. This can make them less useful for meeting your every day needs.
Do you pay for most things with cash? You need to consider where you can access your account. The table on the back
page of this booklet shows how many branches each bank has. Most banks will allow you to access your account from any of their
branches. Automatic teller machines (ATMs) provide a convenient and fast alternative for withdrawing money. Most ATMs can be
used at any time, giving you access to cash outside bank opening hours. Banks which are part of the Kenswitch, PesaPoint or VISA
networks will give you access to more ATMs than just its own, usually at an additional fee.
Do you make purchases from shops or other retailers who accept debit cards such as VISA? Growing numbers
of shops, garages and other retailers now accept debit cards which provide an easy and safe way to pay without the need to
carry cash. When you present your debit card to the retailer, the payment will be authorised by your bank on the spot. This is a
major advantage over cheques since the retailer knows immediately whether the payment will be made or not. Many
transaction and current accounts provide a debit card (which usually also works as an ATM card). VISA debit cards, issued
by many banks, are currently the most widely accepted card in Kenya, but there are other types.
Do you often need to make payments to people who do not accept debit cards? Cheques are a very flexible
way to pay since they can be used to pay anyone. However until the cheque is presented for payment through a bank the person
receiving the cheque will not know whether they will be paid. Many cheques are not paid by banks because the customer does
not have sufficient money in their account to meet the payment. As a result some people will be reluctant to accept a cheque for
payment unless they know you well. To get a cheque book you will need a current account, and this is the major difference from a
transaction account.
How good is the level of service offered by the bank? This is a very important consideration but not always easy to
judge. Most people will want service which is rapid and where they are treated with respect. When you make your first
enquiry are the staff friendly and helpful? Do you know someone who already has an account with the bank who can tell
you about the service they have experienced? Our first survey measured customer service experienced at banks and we will
be repeating this annually.
4
SURVEY ON BANK CHARGES AND LENDING RATES
DECEMBER 2008
FEATURES OF DIFFERENT TYPES OF BANK ACCOUNTS
Current Accounts
Immediate access to funds through a variety of channels including cheque book and over the counter transactions.
Offers an ATM and/or debit card.
May or may not offer interest.
Generally charges fees for transactions.
Aims to provide a day-to-day account for both retail and corporate markets offering a means to conveniently undertake
transactions.
Transactions Accounts
Similar in most respects to a current account but focused on market segment for which a cheque book is not required or
appropriate.
Especially suited to the lower income market for which a simple, low cost means to handle daily transactions is important.
Generally charges fees for transactions.
Savings Accounts
Aims to provide a store of value allowing the accumulation of funds.
Charges/Fees are no longer permitted on this type of account in accordance with the Banking Act. The bank pays interest as
long as the minimum balance is maintained.
May have restrictions on access which will often be an important distinction from a current or transactions account.
Generally offers interest which may be tiered according to average balances.
There are different methods of calculating interest. The more frequently interest is calculated the more money you will
accumulate. If two accounts with the same interest rate but one is calculated on a daily basis and the other on the monthly
basis you will earn more interest on the daily calculation. Likewise if the interest is calculated using your average balance or
minimum balance the later will result in less interest being credited to your account.
Calculation of comparison tables
The following comparison tables were calculated from the returns that the individual banks submitted to the CBK with all their
account offerings as at 31st December 2008.This booklet is aimed at individual general users therefore specialised account
offerings such as staff accounts, business accounts, childrens accounts and foreign currency accounts are excluded from these
listings. Therefore, the tables below do not list all the individual accounts that banks offer nor does it explain the individual
benefits of the various accounts. Please consult your bank to ensure that you get the most appropriate account for your individual
needs.
DECEMBER 2008
SURVEY ON BANK CHARGES AND LENDING RATES
CURRENT ACCOUNTS
Given the average usage patterns described previously the following table lists the cost of operating a current account as at 31st
December, 2008. The below accounts are available to individual general users. In cases where a bank has more than one current
account, the account with the lower opening balance is shown in this table because it is open to more people. If you have a higher
opening balance you can frequently access an account with lower monthly charges. Total monthly costs are for the average user
and may not reflect the actual cost to you as an individual user.
Bank
Account
Total
monthly
cost
Change
since
June 08
Opening
balance
Minimum
balance to
avoid penalty
Fina Bank Limited
Personal chequer
440
-112
2,000
Equity Bank
Personal Current
545
5,000
EcoBank Limited
Ecobank Current A/c-Personal
572
-754
2,500
2,000
Credit Bank Limited
Credi plus
708
-316
3000
1000
Giro Commercial Bank Ltd
Current/Demand A/cs
800
5,000
1,000
Chase Bank Limited
Plus Current
842
5,000
Guardian Bank Limited
Guardian Bank Limited
883
-89
25,000
25,000
Bank of Africa Kenya Ltd
Individual current
907
5,000
Paramount Universal Bank
Retail
912
-46
1000
Development Bank of Kenya Ltd
Savers A/C
923
-253
10,000
Investment and Mortgages Bank Ltd
Sapphire
974
30,000
30,000
Barclays Bank of Kenya Ltd
Individual current
959
-576
Victoria Commercial Bank Ltd
Victoria Commercial Bank Ltd
1,000
+6
50,000
Prime Bank Limited
Prime Bank Limited
1,022
+96
20,000
Imperial Bank Limited
Amber
1,025
-882
200
200
Bank of Baroda (K) Ltd
Bank of Baroda (K) Ltd
1,030
+62
10,000
5,000
Family Bank
Personal current
1,051
-424
2,000
Dubai Bank Limited
Ordinary Current
1,109
20000
Diamond Trust Bank Kenya Ltd
Current acccount
1,132
1,000
Habib AG Zurich
Business
1,134
10,000
Southern Credit Banking Corp. Ltd
Southern Credit Banking Corp. Ltd
1,140
2,000
5,000
National Industrial Credit Bank Ltd
Vintage
1,152
300,000
City Finance Bank Ltd
Individual current
1,193
+537
10,000
10,000
K-Rep Bank Ltd
Ordinary Current
1,195
2,000
Bank of India
Individual current
1,248
+177
25,000
25,000
National Bank of Kenya Ltd
Individual
1,299
-798
5,000
SURVEY ON BANK CHARGES AND LENDING RATES
DECEMBER 2008
Bank
Account
Total
monthly
cost
Change
since
June 08
Opening
balance
Minimum
balance to
avoid penalty
Middle East Bank of Kenya Ltd
Business
1,330
+383
10,000
10,000
Gulf African Bank
Personal
1,355
+500
1,000
1,000
Habib Bank Limited
Habib Bank Limited
1,385
20,000
20,000
First Community Bank
Business current
1,407
1,000
Trans-National Bank Limited
TNB Transaction A/Cs
1,460
10,000
Fidelity Commercial Bank Ltd
Personal Current
1,496
+119
10,000
5,000
Consolidated Bank of Kenya Ltd
Business
1,505
+21
2,500
Citibank, N.A
Non Interest Bearing
1,529
Oriental Commercial Bank-Ordinary
Current
Business
1,552
1,000
Equatorial Commercial Bank Ltd
Equatorial Commercial Bank Ltd
1,588
+1000
10,000
Co-operative Bank of Kenya Ltd
Ordinary Current
1,596
+187
5,000
Kenya Commercial Bank Ltd
Individual
1,834
Commercial Bank of Africa Ltd
Individual current
1,879
+218
20,000
5,000
CFC Stanbic Bank
Individual current
1,886
+137
30,000
African Banking Corporation Ltd
African Banking Corporation Ltd
1,930
+280
10,000
Standard Chartered Bank Ltd
Ordinary Current
2,757
+10
2,000
+2 Ksh increase
DECEMBER 2008
SURVEY ON BANK CHARGES AND LENDING RATES
BUNDLED ACCOUNTS
Bundled accounts are a type of current account offering where a bank charges a single, usually discounted fee, for a bundle of
services. If you use only the services in the bundle this may be a cheaper option than your banks standard current account.
However, you may be charged for all services that you use that are not included in your bundle. If you use few of the services in the
bundle and many outside of it, this can be a more expensive way of banking. When considering bundled accounts think about
how closely the bundle matches your needs. The total cost of bundled products in the table below has been computed based
on the average user patterns for current accounts as established from the survey. The total cost for the bundled products is therefore
composed of the following two components:
Cost of services for the average user (current account) not included in the bundle.
The fixed bundle cost.
Bank
Account
Total
monthly
cost minus
bundled
package
Opening
balance
Minimum
balance
to avoid
penalty
Fixed
bundled
product
charge
Total Account cost
(Bundled charge
+ total cost minus
bundled package)
Change
since
June 08
Kenya Commercial
Bank Ltd
Amana
1,000
500
500
Diamond Trust Bank
Kenya Ltd
DTB Super Salary
Account
431
500
500
200
631
+46
Diamond Trust Bank
Kenya Ltd
DTB Value Account
431
1,000
1,000
490
921
Barclays Bank of Kenya
Ltd
Everyday Bouquet
550
490
1,040
+8
Barclays Bank of Kenya
Ltd
Current Bouquet
490
590
1,080
+22
Barclays Bank of Kenya
Ltd
La Riba Personal
490
590
1,080
Diamond Trust Bank
Kenya Ltd
DTB Super Value
Account
431
2,000
2,000
690
1,121
National Industrial Credit
Bank Ltd
Smart Move Current
A/C
808
2,000
400
1,208
-245
African Banking
Corporation Ltd
Kisima
718
2,000
2,000
495
1,213
Diamond Trust Bank
Kenya Ltd
DTB Executive Account
431
3,000
3,000
790
1,221
+331
Barclays Bank of Kenya
Ltd
Local Business
Transactional
490
750
1,240
-61
Barclays Bank of Kenya
Ltd
La Riba Businness
390
900
1,290
SURVEY ON BANK CHARGES AND LENDING RATES
DECEMBER 2008
Bank
Account
Total
monthly
cost minus
bundled
package
Opening
balance
Minimum
balance
to avoid
penalty
Fixed
bundled
product
charge
Total Account cost
(Bundled charge
+ total cost minus
bundled package)
Change
since
June 08
Barclays Bank of Kenya
Ltd
Local Business
Transaction and Cash
490
900
1,390
-61
Southern Credit Banking
Corp. Ltd
Fixed charge current
account
1,046
2,000
5,000
500
1,546
+76
National Industrial Credit
Bank Ltd
Right Move Current
A/C
808
2,000
800
1,608
-25
Barclays Bank of Kenya
Ltd
Prestige Plus Bouquet
490
1200
1,690
-52
Standard Chartered
Bank Ltd
All in one
1,157
2,000
750
1,907
National Industrial Credit
Bank Ltd
Gold Current A/C
808
2,000
1400
2,208
Barclays Bank of Kenya
Ltd
Premier
390
2000
2,390
Standard Chartered
Bank Ltd
X Account
1,438
2,000
1250
2,688
National Industrial Credit
Bank Ltd
Platinum Current A/C
808
2,000
2000
2,808
+3 Ksh increase
DECEMBER 2008
SURVEY ON BANK CHARGES AND LENDING RATES
TRANSACTION ACCOUNTS
The below accounts are available to individual general users. In cases where a bank has more than one transaction account the
account with the lower opening balance is shown in this table because it is open to the largest number of customers. If you have
a higher opening balance you can frequently access an account with lower monthly charges. Total monthly costs are for the average
user and may not reflect the actual cost to you as an individual user.
Bank
Account
Minimum
balance
Monthly
average
costs
Minimum
monthly
ledger fee
Total
monthly
cost
Change
since
June 08
Prime Bank Limited
Faida Account
10,000
65
100
100
EcoBank Limited
Wananchi
164
164
-57
Equity Bank
Ordinary
176
176
Habib AG Zurich
Deposit Book Account
10,000
218
218
Family Bank
Salary A/Cs
400
223
100
223
Housing Finance
Flexi
500
238
50
238
Bank of Africa
Bank of Africa
5,000
291
200
291
-811
Consolidated Bank of Kenya Ltd
E-Cash
500
295
295
-104
Kenya Commercial Bank Ltd
Mapato
500
192
300
300
Trans-National Bank Limited
Mshahara Savings
500
271
300
300
Investment and Mortgages Bank Ltd
NextGen
1,000
346
346
Co-operative Bank of Kenya Ltd
Ordinary Access
1,000
358
358
National Bank of Kenya Ltd
National Bank of Kenya Ltd
500
379
250
379
CFC Stanbic Bank Limited
E Plan A/C
500
382
55
382
-21
Paramount-Universal Bank Ltd
Individual
5000
393
20
393
Fina Bank Limited
Salary
403
403
Savings and Loans
S&L Pillar
1,000
406
300
406
Victoria Commercial Bank Ltd
Victoria Commercial Bank Ltd
10,000
258
500
500
Barclays Bank of Kenya Ltd
Pepea
100
549
100
549
+103
Commercial Bank of Africa Ltd
Commercial Bank of Africa Ltd
5,000
557
600
600
First Community Bank
FCB salary
500
604
100
604
African Banking Corporation Ltd
Pesa
815
50
815
+445
Standard Chartered Bank Ltd
Instant Access-Personal
5,000
907
907
+14
Equatorial Commercial Bank Ltd
Equatorial Commercial Bank Ltd
500
489
1,000
1,000
-18.7 Ksh decrease
10
SURVEY ON BANK CHARGES AND LENDING RATES
DECEMBER 2008
SAVINGS ACCOUNTS
In order to help you to compare savings accounts we have two different savings scenarios. Where banks have multiple offerings
the one with the highest interest rate for the scenario is used.
Regular savings If you saved Ksh 2,000 every month for one year, how much money would you have in your account at the
end of the year? (Accounts with an opening or minimum balance above 2,000 are excluded.)
Bank
Account
Min.
balance
Interest
rate
Change
since
June 08
Method
interest is
calculated
on x
Frequency
interest
calculated
Frequency
interest
paid
Total
Interest
Total
balance
Barclays Bank of
Kenya Ltd
Mega Saver
1,000
6%
Simple
Daily
Monthly
682
24,682
Equatorial
Commercial Bank
Saving A/C
1,000
6%
Minimum
Monthly
Quarterly
682
24,682
Consolidated Bank Dream
of Kenya Ltd
Saver
2000
6%
+1
SemiAnnually
SemiAnnually
682
24,682
Habib Bank
Savings
NonChequing
Accounts
5.78%
Actual
SemiAnnually
SemiAnnually
656
24,656
Fidelity
Commercial Bank
Ltd
Mdosi
5%
Reducing
SemiAnnually
566
24,566
Savings and Loans Pent House
1,000
5%
Minimum
Monthly
Balance
Annually
Annually
566
24,566
EcoBank Limited
Junior Saver
500
4.50%
Average
SemiAnnually
SemiAnnually
509
24,509
Equity Bank
Jijenge
500
4%
Daily
Daily
Annually
452
24,452
Fina Bank Limited
Fina saver
4%
Minimum
Monthly
Monthly
452
24,452
Kenya Commercial Simba
Bank Ltd
4%
Actual
Monthly
Annually
452
24,452
Prime Bank
Limited
4%
Actual
Monthly
Monthly
452
24,452
2,000
3%
Minimum
Monthly
Monthly
338
24,338
1,000
3%
+0.25
Minimum
Monthly
Monthly
338
24,338
Mwananchi
National Industrial Young
Credit Bank Ltd
Movers
Oriental
Commercial Bank
Limited
Ordinary
Savings
DECEMBER 2008
SURVEY ON BANK CHARGES AND LENDING RATES
11
Bank
Account
Min.
balance
Interest
rate
Change
since
June 08
National Bank
Vision
500
3%
African Banking
Corporation Ltd
Young Star
1,000
2.6%
Chase Bank
Limited
Horizon
2,000
2.5%
Southern Credit
Banking Corp. Ltd
Classic
Saver (Local
Currency)
1,000
Standard
Chartered Bank
Safari
Savings
City Finance Bank
Ltd
Without
Cheque Bk
Method
interest is
calculated
on x
Frequency
interest
calculated
Frequency
interest
paid
Total
Interest
Total
balance
SemiAnnually
Semi Annual
338
24,338
Monthly
SemiAnnually
Quarterly
293
24,293
Actual
Quarterly
Quarterly
281
24,281
2.5%
Minimum
Monthly
Monthly
281
24,281
2,000
2.5%
-1
Actual
Daily
SemiAnnually
281
24,281
1,000
2%
Monthly
Monthly
Monthly
225
24,225
Co-operative Bank Hekima
of Kenya Ltd
1.5%
Monthly
Annually
Annually
168
24,168
Bank of India
Without
Cheque
Book
1,000
1%
Minimum
SemiAnnually
SemiAnnually
112
24,112
Diamond Trust
Bank Kenya Ltd
DTB Savings
Accounts
1,000
1%
Minimum
Monthly
Monthly
112
24,112
Dubai Bank
Limited
Saving USD
500
1%
Actual
SemiAnnually
SemiAnnually
112
24,112
Housing Finance
1st HOP
A/C
1,000
1.00%
Actual
Daily
Annually
112
24,028
K-Rep Bank Ltd
Premium
Savings
0.5%
Straight
SemiAnnually
Annually
56
24,056
+0.1% increase
12
SURVEY ON BANK CHARGES AND LENDING RATES
DECEMBER 2008
SAVINGS ACCOUNTS cont.
Lump sum savings
If you deposited Ksh 20,000 at the beginning of the year and did not make any withdrawals, how much money would you have
in your account at the end of the year? (Accounts with an opening or minimum balance above 20,000 are excluded.)
Bank
Account
Min.
balance
Interest
rate
Change
since
June 08
Method
interest is
calculated
on x
Victoria
Commercial Bank
Ltd
Victoria
Commercial
Bank Ltd
10,000
6%
+1.68
Actual
Equatorial
Commercial Bank
Saving A/C
1,000
6%
Minimum
Consolidated Bank Dream
of Kenya Ltd
Saver
2,000
6%
+1
Barclays Bank of
Kenya Ltd
Mega Saver
1,000
6%
Habib Bank
Savings
NonChequing
Accounts
5.78
Imperial Bank
Limited
Royal
Savings
1,000
Savings and Loans Pent House
Fidelity
Commercial Bank
Ltd
Prime Bank
Limited
Frequency
interest
paid
Total
Interest
Total
balance
Monthly
1,303
21,303
Monthly
Quarterly
1,234
21,234
SemiAnnually
SemiAnnually
1,234
21,234
Simple
Daily
Monthly
1,200
21,200
Actual
SemiAnnually
SemiAnnually
1,187
21,187
5.47%
Average
Quarterly
Quarterly
1,122
21,122
1,000
5%
Minimum
Monthly
Annually
1,023
21,023
Mdosi
5%
Reducing
SemiAnnually
SemiAnnually
1,023
21,023
Mwananchi
4%
Actual
Monthly
Monthly
815
20,815
Kenya Commercial Simba
Bank Ltd
4%
Actual
Monthly
Annually
815
20,815
Fina Bank Limited
4%
Minimum
Monthly
Monthly
815
20,815
Fina saver
Frequency
interest
calculated
Equity Bank
Jijenge
500
4%
Daily
Annually
815
20,815
CFC Stanbic Bank
Limited
Call deposit
5,000
4%
+1
Daily
Monthly
815
20,815
EcoBank Limited
Super saver
5,000
3.50%
+0.5
SemiAnnually
SemiAnnually
711
20,711
DECEMBER 2008
Average
SURVEY ON BANK CHARGES AND LENDING RATES
13
Bank
Account
Min.
balance
Interest
rate
Change
since
June 08
Method
interest is
calculated
on x
Frequency
interest
calculated
Frequency
interest
paid
Total
Interest
Total
balance
Oriental
Commercial Bank
Limited
Ordinary
Savings
1,000
3%
+0.25
Minimum
Monthly
Monthly
608
20,608
National Industrial Mazao
Credit Bank Ltd
5,000
3%
Minimum
Monthly
Monthly
608
20,608
National Bank
Vision
500
3%
SemiAnnually
SemiAnnually
608
20,608
Guardian Bank
Limited
Normal
savings
5,000
3%
Monthly
Monthly
608
20,608
African Banking
Corporation Ltd
Young Star
1,000
2%
SemiAnnually
Quarterly
526
20,526
Standard
Chartered Bank
Safari
Savings
2,000
2.5%
-1
Actual
SemiAnnually
SemiAnnually
506
20,506
Southern Credit
Banking Corp. Ltd
Classic
Saver (Local
Currency)
1,000
2.5%
Minimum
Monthly
Monthly
506
20,506
Chase Bank
Limited
Instant
Saver
5,000
2.5%
Actual
Quarterly
Quarterly
506
20,506
Paramount
Universal Bank
Individual
5000
2%
Actual
Monthly
Monthly
404
20,404
Investment and
Mortgages Bank
Ltd
Young
Savers
5,000
2%
Minimum
Monthly
Quarterly
404
20,404
Giro Commercial
Bank Ltd
Giro
Commercial
Bank Ltd
3,000
2%
Monthly
Monthly
404
20,404
First Community
Bank
Cheque
Plus
5,000
2%
Daily
SemiAnnually
404
20,404
Commercial Bank
of Africa Ltd
Personal
Savings
20,000
2.0%
Daily
Quarterly
404
20,404
City Finance Bank
Ltd
Without
Cheque Bk
1,000
2%
Monthly
Monthly
404
20,404
Dubai Bank
Limited
Saving Kes
5,000
1.5%
-2.5
SemiAnnually
SemiAnnually
302
20,302
1.5%
Annually
Annually
302
20,302
Co-operative Bank Hekima
of Kenya Ltd
14
Average
Actual
SURVEY ON BANK CHARGES AND LENDING RATES
DECEMBER 2008
Bank
Account
Min.
balance
Interest
rate
Change
since
June 08
Method
interest is
calculated
on x
Frequency
interest
calculated
Frequency
interest
paid
Total
Interest
Total
balance
Bank of Baroda
(K) Ltd
Bank of
Baroda (K)
Ltd
3,000
1.5%
Minimum
Quarterly
Quarterly
302
20,302
Housing Finance
St Hop
10,000
1%
Actual
Daily
Annually
201
20,201
Habib AG Zurich
Special
Saving
10,000
1.75%;
Minimum
SemiAnnually
SemiAnnually
201
20,201
Diamond Trust
Bank Kenya Ltd
DTB Savings
Accounts
1,000
1%
Minimum
Monthly
Monthly
201
20,201
Bank of India
Without
Cheque
Book
1,000
1%
Minimum
SemiAnnually
SemiAnnually
201
20,201
K-Rep Bank Ltd
Premium
Savings
0.5%
Straight
SemiAnnually
Annually
100
20,100
Family Bank
Tujenge
Savings/
SAYE
400
0.5%
Average
Annually
Annually
100
20,100
+0.6% increase
DECEMBER 2008
SURVEY ON BANK CHARGES AND LENDING RATES
15
THINGS TO CONSIDER WHEN APPLYING FOR A LOAN
A bank loan is a set amount of money which the bank has agreed to lend you for a set period of time. Payments and interest rates
are agreed at the time of the loan. Different banks offer different types of loans. Speaking with bank branch staff should help you
to work out the loan best suited to your needs. You will be asked to complete a loan application. It is very important to complete
loan application forms accurately and truthfully to make sure that you can afford to pay the loan that you are applying for and
to ensure that the bank gives you the right type of loan. Before taking out a loan you should ask the bank branch staff enough
questions to make sure you understand fully all the terms and conditions of the loan.
The way in which interest is calculated can also have an impact on the amount you pay. The same interest rate charged using a
reducing balance method will cost you less than the flat rate based on the original loan amount. For example if you borrowed 50,000
for two years at 18% interest, Bank A using the declining balance method will charge you 9,896/- in interest, whereas, Bank B
using the flat rate will charge you 18,000/- interest. The flat rate loan at the same interest rate would cost you over 8,000/- more
than the loan calculated using a declining balance.
The interest rate of the loan is only one part of the cost of the loan. You should ask for a complete list of charges. These may include;
commitment / facility fee,
valuation fee,
processing fee,
insurance,
early repayment fee,
appraisal fee,
negotiation fee,
legal fee.
These other fees charged by a bank can significantly change the total cost of a loan for a consumer. The table below contains
a best estimate of these fees for typical loans. However, these can vary according to circumstances. You should check
before signing a loan agreement.
QUESTIONS YOU COULD ASK
What is the interest rate? How is the interest rate calculated, (flat rate or declining balance)?
How much interest will I be charged in total?
What are the charges that I could be faced with during the life of the loan?
What is the total amount that I will have to repay?
16
SURVEY ON BANK CHARGES AND LENDING RATES
DECEMBER 2008
50,000 UNSECURED LOANS
An unsecured loan is the type of loan offered to individuals with a regular monthly salary from employment. The table below
shows the costs of taking out a loan of Ksh 50,000 over two years. Not all banks offered loan products of this amount and duration.
Banks calculate their loans on a reducing balance basis unless otherwise noted.
Bank
Interest
rate %
Change since
June 08
Interest
to pay
Sub total payment
with interest
Other
fees
Total Payment
Cooperative
13.50
7,031
57,031
875
57,906
Victoria
15.25
+1.75
7,943
57,943
500
58,443
Prime
16.00
+1
8,303
58,303
500
58,803
India
16.50
+1
8,594
58,594
500
59,094
Chase
16.50
8,594
58,594
500
59,094
Baroda
17.50
+1.5
9,115
59,115
59,115
KCB
16.00
+1
8,333
58,333
1,170
59,503
CBA
19.00
9,896
59,896
59,896
Trans-national
17.75
+1.75
9,245
59,245
1,000
60,245
EcoBank
18.00
9,375
59,375
1,000
60,375
ABC
18.00
9,375
59,375
1,250
60,625
First Community Bank
11.00
10,992
60,992
60,992
NBK
15.00
7,813
57,813
3,500
61,313
Habib AG-Zurich
20.00
+1
10,417
60,417
1,000
61,417
Consolidated
19.00
+5
9,896
59,896
2,000
61,896
CFC Stanbic
22.25
+1.5
11,589
61,589
500
62,089
Imperial*
14.00
13,992
63,992
500
64,492
Bank of Africa
18.50
+0.5
9,635
59,635
5,000
64,635
Family*
15.00
15,000
65,000
2,500
67,500
Barclays*
17.41
+1.41
17,400
67,400
1,000
68,400
Equity Bank*
18.00
+3
18,000
68,000
1,500
69,500
K-REP*
21.00
+3
21,000
71,000
71,000
+1.7% increase
* Offers loans at flat rate: Imperial, Family, Barclays, Equity, K-Rep
DECEMBER 2008
SURVEY ON BANK CHARGES AND LENDING RATES
17
500,000 UNSECURED LOANS
An unsecured loan is the type of loan offered to individuals with a regular monthly salary from employment. The table below
shows the costs of taking out a loan of Ksh 500,000 over three years. Not all banks offered loan products of this amount and
duration. Banks calculate their loans on a reducing balance basis unless otherwise noted.
Bank
Interest
rate %
Change since
June 08
Interest
to pay
Sub total payment
with interest
Other
fees
Total Payment
Equatorial
14.00
107,917
607,917
5,000
612,917
Cooperative
13.50
104,063
604,063
10,250
614,313
CFC Stanbic
15.25
-6.5
117,552
617,552
5,000
622,552
Victoria
15.25
+1.75
117,552
617,552
5,000
622,552
Prime
16.00
+1
123,032
623,032
5,000
628,032
Family
15.00
115,625
615,625
13,750
629,375
Equity Bank
15.00
115,625
615,625
15,000
630,625
India
16.50
+1
127,188
627,188
5,000
632,188
Chase
16.50
-1.5
127,188
627,188
5,000
632,188
Baroda
17.50
+1.5
134,896
634,896
KCB
16.00
+1
123,333
623,333
ABC
18.00
138,750
638,750
Trans-national
17.75
+1.75
136,823
636,823
CBA
19.00
146,458
646,458
EcoBank
18.00
138,750
638,750
10,000
648,750
NBK
15.00
115,625
615,625
35,000
650,625
Barclays
19.00
+2.1
146,458
646,458
10,000
656,458
Bank of Africa
19.50
+1.5
150,313
650,313
10,000
660,313
First Community Bank
11.00
164,988
664,988
NIC
20.5
+1.5
158,021
658,021
6,500
664,988
Consolidated
19.00
+5
146,458
646,458
20,000
666,458
Habib AG-Zurich
20.00
+1
154,167
654,167
15,000
669,167
STD
20.00
+2
154,167
654,167
16,500
670,667
Imperial*
14.00
209,988
709,988
5,000
714,988
K-REP*
21.00
+3
315,000
815,000
12,500
827,500
Paramount Universal Bank
42.00
323,750
823,750
5,000
828,750
634,896
11,700
635,033
638,750
5,000
641,823
646,458
664,988
+0.8% increase
* Offers loans at flat rate: Imperial, K-Rep
18
SURVEY ON BANK CHARGES AND LENDING RATES
DECEMBER 2008
BANK BRANCHES AND ATMS
Banks with a larger network of branches and ATMS are able to offer their customers greater accessibility.
Banks
Branches
Change
ATMs
Kenya Commercial Bank Ltd.
144
197
Barclays Bank of Kenya Limited
117
16
234
Equity Bank Ltd
102
12
377
Co-operative Bank of Kenya Ltd.
59
182
National Bank of Kenya Ltd.
39
70
Kenswitch
PesaPoint
Family Bank
38
72
Standard Chartered Bank (K) Ltd.
35
95
K-Rep Bank
31
34
Commercial Bank of Africa Ltd.
18
Diamond Trust Bank of Kenya
22
10
16
CFC Stanbic Bank Kenya Ltd
15
31
National Industrial Credit Bank
15
20
P
P
Chase Bank (K) Limited
13
Eco Bank Ltd
13
Investments & Mort. Bank Ltd.
13
15
Trans-National Bank Ltd.
12
P
P
Consolidated Bank of Kenya Ltd.
11
11
Imperial Bank Limited
11
First Community
11
Prime Bank Limited
11
Fina Bank Limited
11
Housing Finance
10
11
African Banking Corporation.
10
Southern Credit Banking Corp.
10
Gulf African Bank
Bank of Baroda Kenya Limited
P
P
P
P
Savings & Loan
Bank of Africa Ltd
Giro Commercial Bank
Fidelity Commercial Bank Ltd.
DECEMBER 2008
SURVEY ON BANK CHARGES AND LENDING RATES
19
Banks
Branches
Change
ATMs
Guardian Bank Limited
Kenswitch
Bank of India (K) Ltd
Equatorial Commercial Bank Ltd.
Oriental commercial Bank Ltd
Paramount-Universal Bank Limited
Habib Bank A.G. Zurich
Credit Bank Limited
Citibank N.A.
Dubai Bank (K) Ltd
Habib Bank Limited
Middle East Bank Kenya Ltd.
City Finance Bank Ltd
Development Bank of Kenya Ltd.
Victoria Commercial Bank
SUB-TOTAL
876
119
1,424
PesaPoint
P
P
P
P
FSD Kenya
Financial Sector Deepening
