Commercial Banks in Kenya form the main one-stop-shop for Kenyans looking for loans. Despite the fact that Kenyans had embraced mobile loan apps for micro-loans, banks still play a huge role in bulk lending especially for those in business.
Most Kenyans often keep off loans from the banks because of the requirements and the processes to be followed before one can get a loan. One needs among other things security as well as good books in terms of receiving cash into the account.
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Among the banks, who are the most expensive lenders according to the calculations found on the Kenya Bankers Association (KBA) website?
Absa Bank Kenya
Sidian Bank
Ecobank
Family Bank
StanChart Bank
Equity Bank
May Fair Bank
Stanbic Bank
Bank of Africa
Co-operative Bank
GT Bank
Absa Bank Kenya comes up as the most expensive bank in Kenya. A borrower taking 1 million shillings personal secured loan for one year from Absa will incur a total credit cost of 143,007 shillings.
The same loan size on similar duration at Sidian Bank will cost 140,807 shillings, Ecobank Kenya at 121,407 shillings, Family Bank at 115,624 shillings, Standard Chartered Bank Kenya 115,000 shillings, and Equity Bank 108,057 shillings.
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Despite being categorized as the most expensive, Kenyans still prefer the above banks given their history in professionalism and how they handle loan requests from customers. The procedure to apply for loans in most of them is clear and open.
The ranking above is based on tabulations of banks’ charges on the website developed by the Kenya Bankers Association (KBA) and the Central Bank of Kenya (CBK) to boost transparency and competition in the lending market.