Banking in Kenya - Money Safe Box

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Banking in Kenya

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Banking in Kenya

In the past people used to trade goods and services to get what they did not have and this is how banking in kenya was done. For example a cow could be traded for vegetables and there was no exchange of funds. The traders would meet to make the exchange. When there was a surplus, the trader with the surplus would sell his goods at lower prices. This trading was mainly controlled by the forces of demand and supply. If there was no demand especially for perishable goods, the trader would be a great loss. Wealth was held as a physical item since it did not have monetary value.

Banking in Kenya made Easy

With development, the monetary system was introduced. This development made the banking system imperative as it was necessary to store the money as it could easily be stolen. The simplest way to describe traditional banking business is collection of deposits and lending the same funds to those who qualify for loans. The banking system has come a long way from the barter trading to electronic funds transfer. The changes in banking are closely linked to the fast and furious changes and developments in electronics and technology.

A bank is therefore the building that holds these monies in various accounts. The monies may not be in the safes or vaults of the building but the various accounts that customers hold are used to know how much money is in the bank and what the bank is worth.

How Banking in Kenya Works

Customers may want to borrow funds from the bank, and when they have qualified, the bank will advance them these monies on the terms that have been agreed. The banks will give out money at higher rates than the interest it will pay to the depositors. Successful banks are those that are able to balance the inflows of monies versus the outflows and the amounts being earned on each sale.

The bigger the banks the wider the range of services on offer. Banking in Kenya has developed with technology and customers have a wide offering of services from the banks

The Companies Act, the Central Bank of Kenya (CBK) Act and the Banking Act are the main regulators and governors of banking Industry in Kenya. These Acts are used together with the prudential guidelines which Central bank of Kenya issues from time to time. In 1995 the exchange controls were lifted after the liberalization of the banking in Kenya.

Introduction to banking Industry in kenya

Central Bank of Kenya is tasked with formulating and implementation of monetary and fiscal policies. Central bank is the lender of last resort in Kenya and is the banker to all other banks. The CBK ensures the proper functioning of the Kenyan financial system , the liquidy in the county and the solvency of the Kenya shilling. The Ministry of finance is where CBK falls.

To address issues that affect the Banking industry in Kenya, banks have come together and formed a forum under the Kenya Bankers Association.

Kenyan Banks have realised tremendous grow in the last five years and have expanded to the east African region. The banking industry in Kenya has also involved itself in automation, moving from the traditional banking to better meet the growing complex needs of their customer and globalization challenges.

There has been increased competition from local banks as well as international banks, some of which are new players in the country. This has served the Kenyan economy well as the customers and shareholder are the ones who have benefited the most.

Some key challenges for the banking industry in Kenya

The major issues facing the banking industry include:
New regulations especially with the passing of the new constitution. CBK requires financial institutions to build up their minimum core capital requirement to Kenya shillings 1 Billion by December 2012. The Terrorist attacks on the twin towers in United States of America emphasised and led to the mandating Acts like Anti-money laundering. Nations are working closing to ensure that proceeds of crime do not get into the financial systems of the world.
The Global crisis experienced affected banking industry in Kenya and more so the mobilization of deposits and trade reduction
The Interest margins declines have also affected the banking industry in Kenya.

A list of all the banks in the Banking industry in kenya

Kenya has quite a number of banks where you can do your transactions. They are mainly located in the major towns. You can also inquire about your home country bank. Karibu-Swahili word for Welcome.

ABC – African Banking Corporation
ABC Bank Building, Koinange Street
P.O. Box 46452, Nairobi, 00100
Tel: 254-20-223922, 251540/1, 217856/7/8,
0722-205570, 0733-333104

Bank of Africa
Re-Insurance Plaza
P.O. Box 69562, Nairobi, 00400
Tel: 254-20-211175, 210546

Bank of Baroda
Tom Mboya Street
P.O. Box 254-20-30033, Nairobi, 00100
Tel: 254-20-220575, 222219, 225801, 226416

Bank of India
Kenyatta Avenue
P.O. Box 30246, Nairobi, 00100
Tel: 254-20-2211414-17

Barclays Bank of Kenya Ltd
NIC House
P.O. Box 30120, Nairobi, 00100
Tel: 254-20-2714471, 2716484

Biashara Bank of Kenya Ltd
Kenprop Building, Muindi Mbingu Street
P.O. Box 30831, Nairobi
Tel: 254-20-222336

CFC Bank Limited
CFC Centre, Chiromo Road
P.O. Box 72833, Nairobi, 00200
Tel: 254-20-3638000
Fax: 254-20-3752905/6/7

Commercial Bank of Africa Ltd (CBA)
Mara & Ragati Roads, Upper Hill
P.O. Box 30437, Nairobi, 00100
Tel: 254-20-2884000, 2734555
Fax: 254-20-2734616

Co operative Bank of Kenya Ltd
Haile Selassie Avenue
P.O. Box 48231, Nairobi, 00100
Tel: 254-20-3276000

Consolidated Bank of Kenya Ltd
Koinange Street
P.O. Box 51133, Nairobi, 00200
Tel: 254-20-340551, 340298, 340836, 230624

Credit Bank Ltd
Koinange Street
P.O. Box 61064, Nairobi, 00100
Tel: 254-20-222300, 222317, 220789

Development Bank of Kenya Ltd
Finance House, Loita Street
P.O. Box 30483, Nairobi
Tel: 254-20-251082, 340401

Diamond Trust Bank Kenya Ltd
Nation Centre
P.O. Box 61711, Nairobi, 00200
Tel: 254-20-210988

Dubai Bank Kenya Ltd
ICEA Building, Kenyatta Avenue
P.O. Box 11129, Nairobi, 00400
Tel: 254-20-311114, 311109, 311132, 311123, 311124
Fax: 254-20-245242

Equatorial Commercial Bank Ltd
Sasini House, Loita Street
P.O. Box 52467, Nairobi, 00200
Tel: 254-20-240766, 240147, 343852, 311205, 218638

Equity Bank Ltd
NHIF Building, Upper Hill
P.O. Box 75104, Nairobi, 00200
Tel: 254-20-2736617, 2736620, 2737334

Fidelity Commercial Bank
IPS Building, 7th Floor, Kimathi Street
P.O. Box 48445, Nairobi, 00100
Tel: 254-20-244187
Fax: 254-20-245370

Giro Commercial Bank Ltd
Giro House & Kimathi Street Branch
P.O. Box 46739, Nairobi, 00100
Tel: 254-20-217776, 216005, 217777, 340544, 340537
Fax: 254-20-230600, 246926, 210679

Imperial Bank Ltd
Bunyala Road
P.O. Box 44905, Nairobi, 00100
Tel: 254-20-2719617-9, 342380, 2719631, 343416-9
Fax: 254-20-2719705, 2719498

Kenya Commercial Bank Ltd
Kencom House, Moi Avenue
P.O. Box 48400, Nairobi, 00100
Tel: 254-20-3270000, 222329

Middle East Bank of Kenya Ltd
Milimani Road
P.O. Box 47387, Nairobi, 00100
Tel: 254-20-2723120

National Bank of Kenya Ltd
Harambee Avenue
P. O. Box 72866, Nairobi, 00200
Tel: 254-20-2828000, 226471, 252375

Paramount Bank
Sound Plaza, 4th Floor, Westlands
P.O. Box 14001, Nairobi, 00400
Tel: 254-20-4449266/7/8
Fax: 254-20-4449265

Prime Bank Ltd
Laxmi Plaza, Biashara Street
P.O. Box 43825, Nairobi
Tel: 254-20-226781, 226787, 339342

Stanbic Bank Kenya Ltd
Waiyaki Way
P.O. Box 30550, Nairobi, 00100
Tel: 254-20-444974, 4446495, 4448778

Standard Chartered Bank Ltd
Stanbank House, Moi Avenue
Tel: 254-20- 212709, 213661, 215572, 215748
Fax: 254-20-330506

Trans National Bank Ltd
City Hall Way
P.O. Box 34353, Nairobi
Tel: 254-20-224235, 224236, 252188

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