Kenya Bank Charges

Late in February 2009, the Central Bank of Kenya released their bank charges survey (PDF). The earlier comments after the last survey still apply mainly:

1 It’s a good read
2 Customer satisfaction/service should be measured (it’s not just about costs)
3 Savings accounts do attract charges (and pay very little interest)

Banking will probably get cheaper as banks adapt to competition from mobile companies –i.e. Safaricom M-Pesa and Zap from Zain which are becoming become mini e-wallets.

Also found was a recent article on avoidable bank charges – which were:

1 overdraft fees
2 ATM fees (that means avoid pesa point and Visa charges)
3 Minimum balance fees

5 thoughts on “Kenya Bank Charges

  1. coldtusker

    MainaT: Whereas the spreads look & are high, they are forced to place (at leas) 5% with the CBK at ZERO interest!

    So if you place 100/- into an account at a bank, they have to ‘give’ 5/- to CBK. Unfair coz many countries’ central banks pay the banks interest on the 5/-.

  2. MainaT

    So if you take average loan rate of 16% less 5%, you are left with 11% then maybe another 5% to cover costs. I’d say 6% for every deposit is something most western banks would give anything to get at in even in credit-crunch free good yrs.

  3. Dagloman

    Bank overdraft fees are becoming absolutely ridiculous. On my site, we get 4-5 people a day complaining about being unfairly charged. Bank of America has just agreed to now charges up to 10 overdraft fees per day at $39 a pop. Considering how they re-order transactions to optimize their fees, this is going to seriously hurt even more customers. Its time to stand up against these policies and demand change.

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