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Why are Kenyan banks so expensive ?
Rank: Veteran Joined: 4/27/2010 Posts: 951 Location: Nyumbani
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I have a case to with Kenyan banks. I would compare with some countries in Europe or elsewhere, for instance i have an account and have a credit card with a Europeen bank. The charges i pay per month for account maintenance is kitu 700Ksh per month. I also pay for my credit card, depends on the card around 4000Ksh per year. With that , i can use my credit card to pay for anything online included at no fee. I can also withdraw money from the bank's ATM or any other bank's ATM at no fee.In Kenya, i think the cheapest bank is Equity, i have an account and the same credit card. I pay kitu 3000kshs per year for maintenace. Actually its free its just coz mine i operate from the net. So i come home, go to withdraw, each time i withdraw i am charged 30kshs (from an equity ATM) guess its more from another bank's ATM. I hear its more for other banks.The same case with loans if i get a loan from my bank huku majuu, the highest interest would be kitu 6% . I try the same with Equity it will hit 15% i hear coops cheapest @ 12 or of late @Faulu. The explanation for this is coz of bad debts and also the intrest charged by central bank.But this does not explain why one has to pay to access his/her own money, i hear there are even banks that charge deposit. Is there a way to prohibit this ? legally ? Kenyan banks are real robbers and their effect is really heavy on the economy.
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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kiash wrote:I have a case to with Kenyan banks. I would compare with some countries in Europe or elsewhere, for instance i have an account and have a credit card with a Europeen bank. The charges i pay per month for account maintenance is kitu 700Ksh per month. I also pay for my credit card, depends on the card around 4000Ksh per year. With that , i can use my credit card to pay for anything online included at no fee. I can also withdraw money from the bank's ATM or any other bank's ATM at no fee.In Kenya, i think the cheapest bank is Equity, i have an account and the same credit card. I pay kitu 3000kshs per year for maintenace. Actually its free its just coz mine i operate from the net. So i come home, go to withdraw, each time i withdraw i am charged 30kshs (from an equity ATM) guess its more from another bank's ATM. I hear its more for other banks.The same case with loans if i get a loan from my bank huku majuu, the highest interest would be kitu 6% . I try the same with Equity it will hit 15% i hear coops cheapest @ 12 or of late @Faulu. The explanation for this is coz of bad debts and also the intrest charged by central bank.But this does not explain why one has to pay to access his/her own money, i hear there are even banks that charge deposit. Is there a way to prohibit this ? legally ? Kenyan banks are real robbers and their effect is really heavy on the economy. so uko mayuu na unataka kung'ang'ania na sisi the peanuts in our banks!! Okay. Now there is an all inclusive account ya Barclays with free atm withdrawal ilikua 600/- sijui kaa iko bado. online payments/internet banking is creaping in slowly we're digitalizing in bits kuwa mpole (issues of accounts security). if CBR rate is 8.5% how do you expect banks to charge less. what will employees be paid? investors (wazuans in it) watapata wapi ROI??? they're "robbers " but we make them so. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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All boils down to who has interest in this banks.... possunt quia posse videntur
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Rank: Veteran Joined: 4/27/2010 Posts: 951 Location: Nyumbani
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Boris Boyka wrote:kiash wrote:I have a case to with Kenyan banks. I would compare with some countries in Europe or elsewhere, for instance i have an account and have a credit card with a Europeen bank. The charges i pay per month for account maintenance is kitu 700Ksh per month. I also pay for my credit card, depends on the card around 4000Ksh per year. With that , i can use my credit card to pay for anything online included at no fee. I can also withdraw money from the bank's ATM or any other bank's ATM at no fee.In Kenya, i think the cheapest bank is Equity, i have an account and the same credit card. I pay kitu 3000kshs per year for maintenace. Actually its free its just coz mine i operate from the net. So i come home, go to withdraw, each time i withdraw i am charged 30kshs (from an equity ATM) guess its more from another bank's ATM. I hear its more for other banks.The same case with loans if i get a loan from my bank huku majuu, the highest interest would be kitu 6% . I try the same with Equity it will hit 15% i hear coops cheapest @ 12 or of late @Faulu. The explanation for this is coz of bad debts and also the intrest charged by central bank.But this does not explain why one has to pay to access his/her own money, i hear there are even banks that charge deposit. Is there a way to prohibit this ? legally ? Kenyan banks are real robbers and their effect is really heavy on the economy. so uko mayuu na unataka kung'ang'ania na sisi the peanuts in our banks!! Okay. Now there is an all inclusive account ya Barclays with free atm withdrawal ilikua 600/- sijui kaa iko bado. online payments/internet banking is creaping in slowly we're digitalizing in bits kuwa mpole (issues of accounts security). if CBR rate is 8.5% how do you expect banks to charge less. what will employees be paid? investors (wazuans in it) watapata wapi ROI??? they're "robbers " but we make them so. Boss they make billions in profits with your 'peanuts' As fro CBR rates, does a bank always has to borrow from CBK?
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Rank: Member Joined: 6/10/2006 Posts: 201 Location: Nairobi
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nation.co.ke wrote:
KENYA BANKERS ASSOCIATION –V- ROSE FLORENCE WANJIRU & 2 OTHERS
In 2003, Rose Florence Wanjiru moved to the High Court, demanding Sh38,960 refund from Standard Chartered Bank for charges on her account.
I guess i will be joining this lawsuit as an 'interested party'. I saw in Tuesday's Nation that citizens have 45 days from July 1st to sign up. Rink>>>
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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kiash wrote:Boris Boyka wrote:kiash wrote:I have a case to with Kenyan banks. I would compare with some countries in Europe or elsewhere, for instance i have an account and have a credit card with a Europeen bank. The charges i pay per month for account maintenance is kitu 700Ksh per month. I also pay for my credit card, depends on the card around 4000Ksh per year. With that , i can use my credit card to pay for anything online included at no fee. I can also withdraw money from the bank's ATM or any other bank's ATM at no fee.In Kenya, i think the cheapest bank is Equity, i have an account and the same credit card. I pay kitu 3000kshs per year for maintenace. Actually its free its just coz mine i operate from the net. So i come home, go to withdraw, each time i withdraw i am charged 30kshs (from an equity ATM) guess its more from another bank's ATM. I hear its more for other banks.The same case with loans if i get a loan from my bank huku majuu, the highest interest would be kitu 6% . I try the same with Equity it will hit 15% i hear coops cheapest @ 12 or of late @Faulu. The explanation for this is coz of bad debts and also the intrest charged by central bank.But this does not explain why one has to pay to access his/her own money, i hear there are even banks that charge deposit. Is there a way to prohibit this ? legally ? Kenyan banks are real robbers and their effect is really heavy on the economy. so uko mayuu na unataka kung'ang'ania na sisi the peanuts in our banks!! Okay. Now there is an all inclusive account ya Barclays with free atm withdrawal ilikua 600/- sijui kaa iko bado. online payments/internet banking is creaping in slowly we're digitalizing in bits kuwa mpole (issues of accounts security). if CBR rate is 8.5% how do you expect banks to charge less. what will employees be paid? investors (wazuans in it) watapata wapi ROI??? they're "robbers " but we make them so. Boss they make billions in profits with your 'peanuts' As fro CBR rates, does a bank always has to borrow from CBK? @kiash sometimes it's good to do maths before complaining. ATM charges are still@30/- for nearly all banks. am charged 150/- for salary acc. I don't make more than two withdrawals a week but even if I make 15 withdrawals a month @30/- + 150=600/- tafakari. Now do annual charges for charges on ATM &card.Faulu interest rate is fixed while other banks interest is on reducing balance! coop looks cheap but if you're keen their monthly installments will be higher than of another bank at same rate (take loan brochures for all banks &compare utaona). where else can banks get enough money to fill loan appetite? saccos thought members deposits are enough alas! (wananichi want more than 4 times what they save) they've resorted to giving FOSA loans at higher rates. have you heard of KBRR? what does MPC say of it. as put sometimes you have to see the difference btwn what you think is right and what you know is right! identify the roots of a problem and cut them not the stem or branches as they will sprout back in masses! Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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As my British friend says, Kenyans need to think 'out of the bank' if they want to progress. Like paying suppliers on time to avoid them from borrowing and overdraft to run business.
BBI will solve it :)
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Why are Kenyan banks so expensive ?
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