Opening a Kenyan bank account continues to be easier. There are numerous players in the banking industry in Kenya and there are different types of bank accounts that one can open in Kenya. These banks offer different types of bank accounts that cater to different types of customers.
Before opening a bank account in Kenya, it is recommended that you visit a number of banks and speak to their staff. Most importantly, you focus on what you really need from a bank. These are the services to look out for when choosing one of the Kenyan banks to work with.
Different types of bank accounts in Kenya and their functions
Current Account
Different types of accounts fall into this category. These include day, student, and salary accounts. They provide instant access to funds through a variety of channels, including checkbooks and over-the-counter transactions. They also offer an ATM and/or debit card. In addition, they may or may not offer interest and generally charge fees for transactions. The existence of these accounts aims to provide a day account for both retail and corporate to make transactions conveniently.
transaction account
They are similar to a current in most respects, but tend to focus on a market segment for which no checkbook is required or appropriate. It is particularly suitable for the low-income market due to its simplicity. Basically, fees are charged for transactions.
saving account
They enable the accumulation of funds. The law does not require fees to be charged for this type of account. The bank will pay you interest as long as the minimum balance is maintained. They usually have access restrictions. These types of accounts are used by banks to collect money from their customers. The amounts are then lent to those who need credit. Customers earn interest on their savings. Few banks issue checkbooks for savings accounts, although the majority issue ATM cards to their customers.
fixed deposit accounts
The amount deposited in this type of account is fixed for a certain period of time. Different amounts and periods may result in different interest rates. The longer the amounts are held, the more interest the customer receives.
How to open a bank account in Kenya
It is recommended that you choose a large bank with a very good branch network. Kenya Commercial Bank, Equity Bank and Cooperative Bank are good examples. However, this should be a personal choice based on your preferences.
It is also recommended that you contact your bank of choice. Choose a bank that is conveniently located. Basically, it should be a bank that you can visit in person.
When you visit the bank, you are essentially given an account application form. You are required to fill it out. More importantly, carry the required documents, all of which must be originals. The documents are checked, copied and returned to you. The documents include your ID card, which can double as a driver’s license if you present a passport or international passport, and a color passport-sized photograph (most account opening officers will photograph you on their premises).
After the documents have been checked, the bank will usually send you your account details via email or even SMS, usually after a week or two, depending on the bank.
It has also been noted that you can fill out an account opening form online. This is typically used by Kenyans in the diaspora. For more guidelines on opening a Kenyan bank account, click here.
Kenyan Bank Account Services
mobile banking
Mobile banking has also been welcomed by various banks. They have created a platform through which the services of the banks can be accessed via a mobile phone. These features are designed to allow customers to access information about their accounts.
online banking
Most Kenyan banks now have internet banking platforms. This relieves the banking halls, since a whole range of transactions can be processed online via the internet banking platform. Usually you want your account to be profiled for internet banking and you will be given the relevant form to fill out before you can access your online bank account.
Opening a bank account in Kenya is considered a good idea for the following reasons:
It provides an avenue to conduct your financial activities. It also helps develop a savings culture and not only acts as a platform through which you can receive payroll transfers, but also provides a sense of transparency in your business transactions.
Read our post on Kenyan Shilling to US Dollar conversion and Kenyan Shilling to British Pound conversion.
Opening a Kenyan bank account is no longer a hassle complicated process. It has just become an in and out affair. The requirements for opening an account vary depending on the number of banks. However, there are obvious similarities. Account opening takes a few minutes for personal and student accounts and a few hours or even days for corporate accounts. With the numerous bank accounts on offer, customers are spoiled for choice.