List: Cheapest and most expensive banks in Kenya

The Kenyan Banks Tariff Survey 2016, conducted by Think Business Limited has a bag of mixed but interesting findings. Tier II banks are on average 40% more expensive for retail customers than Tier I, III and IV.

Conversely Tier I banks are the most expensive for SME customers and are on average 21% more expensive than the other tiers. Tier II banks had the highest increase across the board, recording an increase of 11% between 2015 and 2016. The survey ranks all banks in Kenya on the basis of their charges to their customers.

The Survey focused on model customers in three different demographics: a retail/individual customer; a small SME with an annual turnover not exceeding Ksh5 million; and a big SME with annual turnover of up to Ksh500 million. 

Across the industry the cost of banking for the average retail client increased by between 3-6 percent between 2015 and 2016. Tier I & II banks raised their tariffs by 6 percent while Tier III banks raised their tariff by 3 percent. Tier IV banks did not have any significant raise in their tariffs. (See the banks falling under each tier in the annex).

Meanwhile, Equity Bank, has the lowest charges among the major banks, according to the survey. It shows that Equity Bank had the lowest charges among all the 11 largest Kenyan banks or Tier 1 lenders as they are commonly referred. Equity Bank on average charges customers Sh6,430 in annual fees, nearly half  the Sh12,860 average that Tier 1 banks charge in annual tariffs.

It is followed by Cooperative Bank, whose cost is Ksh8,680. The most expensive is I&M bank whose annual cost of operating an account is Ksh17,280.

Additionally Kenya’s largest banks by customer numbers is currently charging customers less fees than in 2015 where average charges were Sh6,598. he bank has been able to lower average costs due to the rapid uptake of Equitel SIM cards and the increased use of agency banking.

Table: Average annual cost by big banks