Kenyans are paying more to access banking services, a new survey shows.
According to the Kenyan Banks Tariff Survey 2016, customers are now charged at least Sh12,515 per year to access banking services. This is 3 per cent jump from last year when customers were charged an average of Sh12,197.
The survey which was done by publishing firm Think Business found that Tier I banks, those with an asset base of more than Sh150 billion, charged their customers 4 per cent more. Whereas last year, a model customer in tier one bank could spend about Sh12,041, the study found that the cost has risen to Sh12,465 in 2016.
The study assumed a model customer as one in formal employment, married and with two children of school going age.
In tier I, the study named Standard Chartered Bank as the most expensive, charging Sh16,860 followed by Commercial Bank of Africa at Sh15,180. The cheapest was Equity Bank that charged Sh6,430 while Cooperative Bank and Barclays follow at Sh8,680 and Sh9,940 respectively.
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In tier II, banks with an asset base of between Sh50 billion to Sh150 billion, the cost has gone up by 6 per cent from Sh16,481 per year in 2015 to Sh17,417 in 2016. Here, Bank of Baroda charges the highest fee (Sh15,250) while Prime bank is the cheapest at Sh5,100.
The average cost in tier III banks has also jumped from Sh12,204 per annum in 2015 to Sh12,514 in 2016.
Small and Medium Enterprises (SMEs) have also been hit by the increase. For businesses with less than Sh5 million annual turnover, the average cost of banking has jumped from Sh52,712 in 2015 to Sh55,584 in 2016, an increase of 5 per cent.
Again,Tier I banks charge SMEs the highest at Sh62,343 followed by Tier IV banks with an average annual cost of Sh55,059.
Businesses with an annual turnover of less than Sh500 million incur Sh135,485 per annum in tier I, representing a 3 per cent rise in the cost of banking.
In tier II, large firms are now spending an average of Sh113,666. This is 10 per cent more than what they were charged last year.
Tier III and IV have also increased costs by at least 5 per cent and 6 per cent respectively. According to the survey, non-interest income is now the largest source of income at slightly over 50 per cent. Forex income accounts for about 5 per cent of banks' revenue.
