What Kenyan youth look into before choosing a bank

NAIROBI, KENYA: Amos Milowa and Stela Kamau are in their late twenties and recently landed a job as media executives at a leading Public Relations firm in Nairobi.
Top on their list during the job offer included getting an ideal bank that would serve their interests.
Kenya currently has about 43 licensed commercial banks and one mortgage finance company. Out of the 44 institutions, 31 are locally owned and 13 are foreign owned. The locally owned financial institutions comprise 3 banks with significant shareholding by the Government and State Corporations, 27 commercial banks and one mortgage finance institution.
“Having an account is crucial when one gets employed or starts to make some money that needs to be saved for the future,” says Stela Kamau. “Choosing a suitable bank from many in the market can however prove to be challenging,” she notes.
“I like my current bank because it has branches in major parts of the country which makes it possible to access money easily,” she says.
Her colleague Amos Milowa says he settled on a bank which enables him access loans, deposit, withdraw and make balance inquiry via mobile phone. But he says he would first look at the types of accounts a bank offers before signing for services, availability of ATM machines and interest rates on loans would also be a key determinant in selecting a bank to do business with.
“My bank currently offers me three different accounts which includes savings, transaction, and current accounts,” he says. “I frequently use current account which is ideal for high frequency access to cash at any time,’ he says adding that the account also allows him to make payments using cheque book, mobile or internet banking and access to regular statements.” See Also: How WorldRemit aids in money transfer Stela Kamau says she has a tight schedule at his work place which requires her on duty most of the time.
“I looked at a bank where I can use my phone to perform some banking activities for instance accessing my money to buy airtime or wire money to my relatives virtually, this saves time queuing in the hall for services,” she adds. In recent events to decongest banking halls and improve financial inclusion among Kenyans, local banks have been into partnerships with telecommunication companies to enable Kenyans access banking services via their mobile phones.
The Kenya Commercial Bank and Commercial Bank of Africa are among leading institutions in partnership with Safaricom to enable customers use phone to access facilities such as loan. KCB Bank-M-PESA account enable one get a loan via mobile phone by just dialing *844#. Using the KCB Bank M-PESA account users get a flexible repayment period ranging from one month to six months and the facility fee for the loan will start from as low as 2 per cent interest per month for either a fixed deposit account or a target savings account.

Originally posted 2015-06-30 22:05:36.

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