Best Fixed Deposit Rates Kenya 2026
Fixed deposits are the most straightforward savings instrument in Kenya: lock money away for a fixed term, earn a guaranteed rate. The current top rate sits at 14% p.a. from Stanbic Bank â well above inflation and far ahead of regular savings accounts offering 3-5%.
Rates are indicative and updated as of Q1 2026. Always confirm current rates directly with your bank before committing.
Quick Comparison: Fixed Deposit Rates Kenya 2026
| Bank | 3 Months | 6 Months | 12 Months | Min. Deposit |
| Stanbic Bank | 10.5% | 12.0% | 14.0% | KES 100,000 |
| KCB Bank | 9.0% | 11.0% | 12.5% | KES 50,000 |
| Equity Bank | 8.5% | 10.5% | 12.0% | KES 10,000 |
| Co-operative Bank | 8.5% | 10.0% | 11.5% | KES 50,000 |
| NCBA Bank | 8.0% | 9.5% | 11.0% | KES 100,000 |
| I&M Bank | 8.0% | 9.5% | 11.0% | KES 50,000 |
| Standard Chartered | 8.5% | 9.5% | 10.5% | KES 100,000 |
| Absa Bank Kenya | 7.5% | 9.0% | 10.0% | KES 50,000 |
Use the Fixed Deposit Calculator to see your exact returns after 15% withholding tax.
How Fixed Deposits Work in Kenya
A fixed deposit (also called a term deposit or time deposit) locks your money with a bank for a pre-agreed period â typically 1, 3, 6, or 12 months. In return, the bank pays a higher interest rate than a standard savings account.
Key mechanics:
- You agree on amount, term, and rate upfront
- Interest accrues daily, paid at maturity or monthly depending on the bank
- Early withdrawal usually triggers a penalty (forfeiture of some or all interest)
- On maturity, most banks offer automatic rollover unless you instruct otherwise
The tax reality: Kenya Revenue Authority deducts 15% withholding tax on all FD interest for residents. A 14% gross rate becomes 11.9% net. Still strong, but worth factoring into your return calculations.
Bank-by-Bank Breakdown
Stanbic Bank â Best Rate (14% for 12 months)
Stanbic Bank is the current rate leader in Kenya's FD market, offering up to 14% p.a. on 12-month deposits. Part of the Standard Bank Group (South Africa), Stanbic targets the premium segment â hence the higher minimum of KES 100,000.
- 12-month rate: 14.0% gross (11.9% after WHT)
- 6-month rate: 12.0%
- 3-month rate: 10.5%
- Minimum deposit: KES 100,000
- USSD: *909#
On KES 500,000 placed for 12 months at 14%, you earn KES 59,500 after the 15% withholding tax.
KCB Bank â Best for Mid-Range Deposits
KCB Bank â Kenya's largest bank by assets â offers competitive 12-month rates at 12.5% with a KES 50,000 minimum, making it accessible for a broader range of savers.
- 12-month rate: 12.5% gross (10.6% after WHT)
- 6-month rate: 11.0%
- 3-month rate: 9.0%
- Minimum deposit: KES 50,000
- USSD: *522#
KCB also offers rate enhancements for deposits above KES 5 million â worth negotiating if you have larger sums.
Equity Bank â Best for Low Minimum Deposits
Equity Bank stands out with a KES 10,000 minimum â the lowest among major banks. The 12-month rate of 12.0% is solid, and Equity's extensive branch and agent network (6,000+ agents) makes access easy.
- 12-month rate: 12.0% gross (10.2% after WHT)
- 6-month rate: 10.5%
- 3-month rate: 8.5%
- Minimum deposit: KES 10,000
This makes Equity the go-to option for salaried workers looking to start saving without a large lump sum.
Co-operative Bank â Solid Mid-Tier Option
Co-operative Bank offers 11.5% on 12-month FDs with a KES 50,000 minimum. Co-op has the strongest presence in rural Kenya through Sacco linkages, which can simplify transfers in and out.
- 12-month rate: 11.5% gross (9.8% after WHT)
- 6-month rate: 10.0%
- 3-month rate: 8.5%
- Minimum deposit: KES 50,000
NCBA Bank â Competitive for Larger Deposits
NCBA Bank (formed from the merger of NIC and CBA) offers 11.0% on 12-month FDs. The KES 100,000 minimum is higher, but NCBA regularly runs promotional rates for new customers that can push returns above headline levels.
- 12-month rate: 11.0% gross (9.4% after WHT)
- 6-month rate: 9.5%
- 3-month rate: 8.0%
- Minimum deposit: KES 100,000
I&M Bank â Consistent Performer
I&M Bank matches NCBA at 11.0% for 12 months. I&M is known for quick FD processing and a straightforward rollover process â less paperwork than some of the larger banks.
- 12-month rate: 11.0% gross (9.4% after WHT)
- 6-month rate: 9.5%
- 3-month rate: 8.0%
- Minimum deposit: KES 50,000
Standard Chartered â Premium Service, Lower Rate
Standard Chartered Kenya offers 10.5% on 12-month FDs. The rate is below peers, but Standard Chartered's Priority Banking clients often access preferential rates above the published schedule.
- 12-month rate: 10.5% gross (8.9% after WHT)
- 6-month rate: 9.5%
- 3-month rate: 8.5%
- Minimum deposit: KES 100,000
Absa Bank Kenya â Entry-Level Option
Absa Bank Kenya offers the lowest published rate at 10.0% for 12 months, but compensates with a wide branch network and a solid digital banking platform.
- 12-month rate: 10.0% gross (8.5% after WHT)
- 6-month rate: 9.0%
- 3-month rate: 7.5%
- Minimum deposit: KES 50,000
Fixed Deposits vs Money Market Funds
Not everyone should choose an FD. Money Market Funds (MMFs) are the main alternative for Kenyan savers.
| Feature | Fixed Deposit | Money Market Fund |
| Typical return | 10â14% p.a. | 14â17% p.a. |
| Liquidity | Locked until maturity | Same-day or T+1 withdrawal |
| Tax | 15% WHT on interest | 15% WHT on interest |
| KDIC protection | Yes (up to KES 500,000) | No (CMA regulated) |
| Minimum investment | KES 10,000â100,000 | KES 1,000â5,000 |
| Rate guarantee | Fixed for term | Variable (market-linked) |
Bottom line: If you need the money potentially accessible within 3 months, an MMF makes more sense. If you can commit the funds for 6â12 months and value the guaranteed rate and KDIC protection, a fixed deposit is the better fit.
Who Should Open a Fixed Deposit?
Fixed deposits suit Kenyans who:
- Have a lump sum they won't need for 6â12 months (emergency fund proceeds, bonus payment, business surplus)
- Want guaranteed returns without market risk
- Are saving toward a specific goal â school fees, car purchase, deposit on property
- Already have an MMF and want a risk-diversified savings mix
They are less suitable if your funds are your primary emergency reserve, since early withdrawal penalties can cost you weeks of interest.
The Deposit Laddering Strategy
Rather than placing all funds in one FD at one rate and term, laddering splits the amount:
- KES 100,000 â 3-month FD at Stanbic (10.5%)
- KES 100,000 â 6-month FD at KCB (11.0%)
- KES 100,000 â 12-month FD at Stanbic (14.0%)
Every quarter, a portion matures. You re-invest at current rates (capturing any rate increases) while always having some funds coming available. This balances yield and liquidity.
Summary
The fixed deposit market in Kenya is competitive right now, with the spread between top and bottom rates spanning 4 percentage points on 12-month terms. Stanbic's 14% is the headline rate but requires KES 100,000. For smaller amounts, Equity Bank's 12% at a KES 10,000 minimum is the standout option.
Always confirm rates directly with the bank â published rates are indicative and change with CBK monetary policy decisions.