Being banked is not cheap, annually KSh 13,460 is used to maintain your account
By David Indeje / Published August 31, 2017 | 8:18 am
The annual cost for running a bank account in Kenya range between KSh 3,629 to KSh 13,460 annually according to the Financial Sector Deepening (FSD) report.
‘The Price of Being Banked. A study on transparency and cost of leading banking services sold in Kenya’, shows cost is diverse when it comes to withdrawing, transferring and paying for fixed maintenance costs.
While releasing the survey, FSD noted that “Access to financial services has expanded rapidly over the past few years in Kenya but transparency hasn’t always followed. We still don’t know how affordable many financial services are.”
According to the FSD survey, most Kenyans know how high the cost of credit in Kenya is but the deposit side has received little attention.
FSD Kenya undertook a two-year study – with 11 banks and 22 accounts- to understand the cost of banking in Kenya. Our researchers, or “mystery shoppers,” visited bank branches posing as customers, making follow-up phone calls and website visits to confirm data.
In their findings, the funds required to open a bank account varied from KSh 155 to KSh 5,660 (averaging KSh 1,322), mostly because of some bank’s minimum opening balance requirements.
Closing a bank account ranges from KSh 495 to KSh 1,815, averaging KSh 1,002.
According to the report, it costs Sh535 to send Sh5,000 via RTGS, Sh318 through electronic funds transfer (EFT) while mobile to bank attracts an average fee of Sh58.
Withdrawal via agent is the least expensive in the country costing an average of Sh45 to withdraw Sh5000 via a bank agent while mobile withdrawal costs an average of Sh70.
ATM withdrawal within the network costs an average fee of Sh29, using a card to withdraw outside the network costs Sh127, making the average ATM withdrawal fee in Kenya Sh78.
Over-the-counter withdrawals remain among the most expensive transactions, costing an average Sh177 to withdraw Sh5000.
The report concludes that “Unless it ( transparency in the Kenyan banking market) is addressed it is unlikely that the government’s policy objectives on competition and consumer protection will be met. Inevitably if the industry does not improve its performance then the pressure will grow for regulatory action.
More Articles From This Author
Trending Stories
Other Related Articles
SOKO DIRECTORY & FINANCIAL GUIDE
-
Accountants and Auditors
Banks
Business Consultants
Clearing and Forwarding
Co-operative Movement
Financial and Tax Consultants
Forex Bureaus
Insurance
Investment Banks
Real Estate
Retail Industry
Small and Medium Enterprises
Stock Brokers
ARCHIVES
- 2023
- January 2023 (183)
- February 2023 (204)
- March 2023 (235)
- 2022
- January 2022 (293)
- February 2022 (329)
- March 2022 (359)
- April 2022 (292)
- May 2022 (271)
- June 2022 (232)
- July 2022 (278)
- August 2022 (253)
- September 2022 (246)
- October 2022 (196)
- November 2022 (232)
- December 2022 (166)
- 2021
- January 2021 (182)
- February 2021 (227)
- March 2021 (325)
- April 2021 (259)
- May 2021 (285)
- June 2021 (273)
- July 2021 (277)
- August 2021 (232)
- September 2021 (271)
- October 2021 (305)
- November 2021 (364)
- December 2021 (249)
- 2020
- January 2020 (272)
- February 2020 (310)
- March 2020 (390)
- April 2020 (321)
- May 2020 (335)
- June 2020 (327)
- July 2020 (333)
- August 2020 (276)
- September 2020 (214)
- October 2020 (233)
- November 2020 (242)
- December 2020 (187)
- 2019
- January 2019 (251)
- February 2019 (215)
- March 2019 (283)
- April 2019 (254)
- May 2019 (269)
- June 2019 (249)
- July 2019 (335)
- August 2019 (293)
- September 2019 (306)
- October 2019 (313)
- November 2019 (362)
- December 2019 (318)
- 2018
- January 2018 (291)
- February 2018 (213)
- March 2018 (275)
- April 2018 (223)
- May 2018 (235)
- June 2018 (176)
- July 2018 (256)
- August 2018 (247)
- September 2018 (255)
- October 2018 (282)
- November 2018 (282)
- December 2018 (184)
- 2017
- January 2017 (183)
- February 2017 (194)
- March 2017 (207)
- April 2017 (104)
- May 2017 (169)
- June 2017 (205)
- July 2017 (189)
- August 2017 (195)
- September 2017 (186)
- October 2017 (235)
- November 2017 (253)
- December 2017 (266)
- 2016
- January 2016 (164)
- February 2016 (165)
- March 2016 (189)
- April 2016 (143)
- May 2016 (245)
- June 2016 (182)
- July 2016 (271)
- August 2016 (247)
- September 2016 (233)
- October 2016 (191)
- November 2016 (243)
- December 2016 (153)
- 2015
- January 2015 (1)
- February 2015 (4)
- March 2015 (164)
- April 2015 (107)
- May 2015 (116)
- June 2015 (119)
- July 2015 (145)
- August 2015 (157)
- September 2015 (186)
- October 2015 (169)
- November 2015 (173)
- December 2015 (205)
- 2014
- March 2014 (2)
- 2013
- March 2013 (10)
- June 2013 (1)
- 2012
- March 2012 (7)
- April 2012 (15)
- May 2012 (1)
- July 2012 (1)
- August 2012 (4)
- October 2012 (2)
- November 2012 (2)
- December 2012 (1)
- 2011
- 2010
- 2009
- 2008
- 2007
- 2006
- 2005
- 2004
- 2003
- 2002
- 2001
- 2000
- 1999
- 1998
- 1997
- 1996
- 1995
- 1994
- 1993
- 1992
- 1991
- 1990
- 1989
- 1988
- 1987
- 1986
- 1985
- 1984
- 1983
- 1982
- 1981
- 1980
- 1979
- 1978
- 1977
- 1976
- 1975
- 1974
- 1973
- 1972
- 1971
- 1970
- 1969
- 1968
- 1967
- 1966
- 1965
- 1964
- 1963
- 1962
- 1961
- 1960
- 1959
- 1958
- 1957
- 1956
- 1955
- 1954
- 1953
- 1952
- 1951
- 1950