Category Archives: NIC

Flat fee Banking

Flat fee bank accounts are the closest thing to free-checking accounts here. NIC was the first with MOVE (launched in November 2003) and since then other Bank’s have tried to imitate the MOVE concept whose main feature was an offer of a variety of bank transactions – all for a flat monthly fee. A comparison of the offers in order of rank;

1. Diamond Trust Open Plan:(490/= shillings per month)
Diamond Trust Open Plan includes ATM card, one chequebook each year inward salary processing, unlimited deposits & withdrawals from ATM and quarterly statement internal transfers. The Bank also has Open Air: (For 690/=) which comes with spouse ATM card, free internet banking, 2 chequebooks a year, and monthly statement) and Open Sky: (For 790/=) which offers one a designated relationship manager, 3 chequebooks a year, 1 free bankers cheque per month and unlimited standing orders inclusive of loan instalments to other banks. DTB currently has 11 ATM locations (9 in Nairobi).

2. NIC Move (800/= month)
MOVE includes a free ATM Card, 50-leaf cheque book, incoming salary transfers, monthly Standing orders & direct debits, one free Bankers’ cheque per month, internet banking, monthly statement, SMS Banking and MOVE Zone Locations have loan/account representatives and self-help PC available from 8 a.m. to 8 p.m. MOVE has 13 (11 in Nairobi) ATM locations.

3. Standard Chartered All-in-One (750/= per month)
Stanchart includes ATM card, chequebooks, standing orders, local/foreign telegraphic transfer, traveller’s cheques, local ATM withdrawals, free foreign currency purchase/sale, free DEBIT card and one free banker’s cheque per month. Has the largest ATM network (58) out of the four banks.

4. CFC (Saturday only)
CFC Bank has some transactions free on Saturdays only including interim statements, chequebooks, banker’s cheques/drafts, and traveller’s cheques. (All are subject to minimum balance of 10,000 maintained throughout the month, otherwise a fee of Kshs. 500 per month applies)

Overseas Kenyan’s want to, but can’t, bank in Kenya

Local financial institutions are missing out on a billion dollar business due to their failure to cater for the needs of the Kenyan community abroad, a recent survey of the banking sector indicates.

The survey, however, noted that banks such as Commercial Bank of Africa and National Industrial Credit (NIC) Bank have launched products that target Kenyans living abroad.

A lot of Kenyan’s abroad have asked me about how they can open, and operate, bank accounts in Kenya from overseas. It’s not an easy thing to do, as most Banks’ open account following face-to-face meetings where you draw signatures in their presence and they inspect you ID and other documents. So it’s best to open an account when you visit Kenya. 

Bank 2004 Round Up

Kenya Commercial Bank: in 2004 KCB posted a net-profit Kshs. 793 million, a slight increase from 713 million in 2003. Its loan portfolio was 33 billion (up by 8 billion) while customer deposits were 52 billion (up by 4 billion). Staff costs increased by 15% to 3.4 billion and the bank still has a non-performing loan portfolio of 15 billion. Shareholders will be asked to approve payment of a 2 shillings per share dividend at the Bank’s AGM at KICC on June 17.

NIC: As expected NIC’’s successful MOVE did not improve profits much in 2004, during the year. The benefits will be seen in 2005/06. The Bank recorded an 8% profit increase to 261 million. Deposits increased by 57% to 12.5 billion and loans to customers increased by 67% to 11.5 billion thanks to various MOVE loan packages. However operating expenses increased by 35% to 782 million, including a 30% increase in staff costs. NIC’s AGM will be on May 27th at Intercontinental Hotel and a dividend of 2.4 shillings/share for the year will be paid.

Diamond Trust: Net profit for the year increased by 6% to 131 million. The Bank increased its loans to customers by 46% (to 7.1b) while reducing its investment in government securities by 50% (to 1.2b). The bank introduced 3 flat-fee accounts (imitating NIC’s MOVE) and also launched an ATM network during the year – this increased deposits by 35% to 8 billion, but operating costs also increased by 30% to 578 million. The directors declared a dividend of 70 cents.

Matatu (PSV sector) financing

While NIC Bank is well known for its MOVE banking concept, its asset finance scheme has also been very popular for the Kenyan’s eager to enter the matatu business.

The Michuki rules have made it easier for new entrants to break into what used to be a murky sector – and NIC has been the financier of choice. The Bank has allocated the PSV sector 35% of its asset finance portfolio. According to the Bank’s head of asset finance, Edna Kihara, the minimum loan amount is 300,000 and with loans processed within 48 hours, this has proved to be very popular.

Other terms are that: (1) only new matatu’s financed – no used or ex-Japan vehicles (2) owner deposits 40% (3) 1-3 year loan (4) insure vehicle comprehensively (5) joint registration with NIC (6) commitment fee of 2%.

Banking Jobs

Industrial Development Bank is looking for a new managing director. Like with the NIC MD job, you must have at least 15 years of banking experience. (Deadline December 17th).

Africa Alliance Investment bank is looking for two experienced investment bankers (D/L 17/12).

CFC Bank is looking for an assistant corporate manager, assistant hire purchase manager, marketing officer, credit administrator officer and a supervisor corporate credit (D/L 13/12).

And the Nairobi Stock Exchange has re-advertised for the post of chief operations officer (D/L 17/12); applicants must have 10 years managerial experience.

All these jobs were advertised in the daily nation of Friday December 3.