$9bn in non-interest bearing deposits keep top 3 Kenyan banks ahead of the pack

Sh923b deposits keep top banks ahead of the pack

However, despite the amendment in the Banking Act that now requires banks to give customers at least 70 per cent per cent of the benchmark rate on their fixed deposits, the three banks are benefiting from cheap deposits. Three of the Kenya’s top banks now hold customer deposits that are enough to fund more than a third of the 2017/18 national budget.

According to the latest company filings by Kenya Commercial Bank (KCB), Co-operative Bank and Equity Bank, they have Sh923.4 billion in their books of accounts as customer deposits, most of which are non-interest-bearing.

This is a Sh75.4 billion or 8.89 per cent growth in deposits when compared to the full-year period ended December 31, 2015.

At the time, Central Bank of Kenya (CBK) supervision report put the total deposits of the three banks at Sh848 billion.

However, despite the amendment in the Banking Act that now requires banks to give customers at least 70 per cent per cent of the benchmark rate on their fixed deposits, the three banks are benefiting from cheap deposits.

CBK data for 2015 put the customer base for the three banks at 15.5 million, with Equity bank’s base being the largest at 8.8 million customers.

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