The gap between the best and worst fixed deposit rate in Kenya in 2026 is 3.5 percentage points. On a KES 1M deposit held for 36 months, that's roughly KES 105,000 in extra interest before tax. Same money, same term, same KDIC protection â completely different outcomes.
Most Kenyans leaving idle cash in a current or savings account earn between 0.5% and 2% per year. Bank marketing wants you to believe this is normal. It isn't. A licensed CBK commercial bank will pay you 10.0% per year on a 36-month fixed deposit right now. That's Family Bank's advertised rate as of April 2026, published and available to any depositor meeting the KES 50,000 minimum.
This article ranks the 12 best fixed deposit rates in Kenya in April 2026, verified against each bank's current rate card. It also covers the three things most "best fixed deposit" articles get wrong: tax treatment, early-withdrawal penalties, and why a 9.75% rate with a lower minimum can beat a 10% rate in practice.
The verdict â best FD rates Kenya 2026
| Rank | Bank | 36-month rate | Min deposit | 12-month rate |
| 1 | Family Bank | 10.00% | KES 50,000 | 9.50% |
| 2 | I&M Bank | 9.75% | KES 50,000 | 9.25% |
| 3 | HF Bank | 9.50% | KES 50,000 | 9.25% |
| 4 | Equity Bank | 9.50% | KES 100,000 | 9.00% |
| 5 | DTB Kenya | 9.50% | KES 50,000 | 9.00% |
| 6 | National Bank (NBK) | 9.25% | KES 50,000 | 8.75% |
| 7 | Bank of Africa | 9.25% | KES 50,000 | 8.75% |
| 8 | Victoria Commercial | 9.00% | KES 50,000 | 8.50% |
| 9 | Sidian Bank | 9.00% | KES 25,000 | 8.50% |
| 10 | Prime Bank | 9.00% | KES 50,000 | 8.50% |
| 11 | NCBA Bank | 9.00% | KES 100,000 | 8.50% |
| 12 | KCB Bank | 9.00% | KES 100,000 | 8.50% |
Rates verified April 2026 against each bank's published rate card. Minimum deposits are the lowest tier â larger deposits may negotiate higher rates (particularly at Tier 2 banks). 15% withholding tax applies on all interest earned.
Compare all 38 Kenyan bank fixed deposit products â
The headline: Family Bank's 10% is real
Family Bank's 10.00% annual rate on a 36-month deposit is currently the highest published fixed deposit rate from any CBK-licensed commercial bank in Kenya. The tiered structure runs:
- 3 months: 7.50%
- 6 months: 8.50%
- 12 months: 9.50%
- 24 months: 9.75%
- 36 months: 10.00%
Minimum deposit: KES 50,000.
For context, the Central Bank Rate on 10 February 2026 was cut from 9.00% to 8.75%. Family Bank's 36-month rate is paying 125 basis points above CBR â a meaningful premium that reflects Family Bank's need to fund its growing SME and cooperative lending book. Tier 1 banks (KCB, Equity, Co-op, Stanbic) typically pay 50-100 basis points less because they fund cheaper through M-Pesa deposits and current-account float.
When James, a Nairobi-based IT consultant, received a KES 2M bonus in February 2026, he compared FD rates across his own bank (Stanbic, paying 8.5% on 36-month) and the top-ranked banks. Moving the money to Family Bank at 10% earned him an extra KES 90,000 in interest over three years. The cost: opening a new account at a different bank (2 hours) and accepting a slightly smaller branch network. For a one-off savings decision, that's straightforward math.
Why tax actually matters
This is the single biggest error in most "best fixed deposit" articles. Every shilling of fixed deposit interest in Kenya is taxed at 15% withholding tax, deducted at source by the bank and remitted to KRA. You never see the gross number.
Here's what that looks like in practice on a KES 1,000,000 deposit held for 36 months:
| Bank | Gross rate | Gross interest (3yr) | Withholding tax | Net interest |
| Family Bank | 10.00% | KES 300,000 | -KES 45,000 | KES 255,000 |
| I&M Bank | 9.75% | KES 292,500 | -KES 43,875 | KES 248,625 |
| Equity Bank | 9.50% | KES 285,000 | -KES 42,750 | KES 242,250 |
| KCB Bank | 9.00% | KES 270,000 | -KES 40,500 | KES 229,500 |
| Stanbic (8.5%) | 8.50% | KES 255,000 | -KES 38,250 | KES 216,750 |
The real take-home on KES 1M at the top rate: KES 255,000 after 3 years. That's 8.5% effective per year, after tax, with full KDIC insurance protection up to KES 500,000.
For Kenyans, that's meaningfully better than inflation (CBK projected 4.2-5.5% for 2026), better than a NSE index-tracker after fees, and completely free of market risk.
Early withdrawal: where banks quietly punish you
If you withdraw a fixed deposit before maturity, you pay a penalty. Read the small print before you commit the cash. Rough picture across the top 12:
| Bank | Early withdrawal penalty |
| Family Bank | Loss of accrued interest + 1% fee |
| I&M Bank | Loss of accrued interest + 1% fee |
| Equity Bank | Interest recalculated at savings-account rate |
| KCB Bank | Interest forfeited + 1% of deposit |
| NCBA Bank | Loss of accrued interest, 30-day notice required |
| Stanbic | 1% of deposit OR forfeit accrued interest (whichever is higher) |
| DTB Kenya | Loss of accrued interest + 1% fee |
Rule of thumb: don't lock money in a fixed deposit you might need early. The penalty almost always erases your interest gain, sometimes takes a chunk of principal, and leaves you worse off than if you'd held the money in a money-market fund instead.
Wanjiku, a Nakuru-based teacher, learned this the hard way in 2025. She fixed KES 400,000 at 8.75% for 12 months at KCB, needed the money for her mother's surgery after 7 months, and ended up with KES 403,000 back â barely better than a current account. Her father-in-law, meanwhile, had put the same amount in a money-market fund yielding roughly 8.5%, could withdraw in 2-4 days without penalty, and walked away with KES 419,600. Same rough rate, completely different flexibility.
Money market funds often beat short-tenure fixed deposits once you account for optionality. See our money market fund comparison (coming soon) or compare fixed deposits to MMFs here â.
Deep dive: the top 5
1. Family Bank â 10.00% (36-month)
Kenya's highest published rate at April 2026. Minimum deposit KES 50,000. Interest can be paid monthly, quarterly, or at maturity â useful if you need regular income from the deposit (a retirement supplement, for example). Family Bank is a Tier 2 commercial bank founded in 1984, KDIC-insured, currently growing its SME lending book aggressively.
Best for: Savers willing to switch banks for the best rate and who can commit for 36 months.
2. I&M Bank â 9.75% (36-month)
Tier 1 bank with a strong private banking tradition. Minimum KES 50,000 for standard FDs; negotiable rates above KES 5M. I&M pays slightly below Family Bank but with a broader branch network and premier banking integration if your deposit is KES 5M+.
Best for: Existing I&M Bank customers or depositors who value a Tier 1 bank brand.
3. HF Bank â 9.50% (36-month)
Formerly Housing Finance, HF Group is a specialist mortgage-funding bank, and its fixed deposits fund its housing loan book. The 9.5% rate is competitive; HF's specialisation means fewer retail products than a KCB or Equity, but the FD product is straightforward.
Best for: Depositors who want to park money with a specialist mortgage bank.
4. Equity Bank â 9.50% (36-month)
Tier 1 mass-market bank. Minimum KES 100,000 â double the Family Bank minimum. Offers higher rates negotiable above KES 10M deposits. The premium pricing reflects Equity's ability to pass through better rates to depositors while still undercutting on loans.
Best for: Existing Equity customers with KES 100k+ to deposit.
5. DTB Kenya â 9.50% (36-month)
Diamond Trust Bank has a long-standing reputation among Asian-Kenyan and SME banking segments. DTB has repriced aggressively after the February 2026 CBR cut â the 9.5% rate reflects a conscious push to grow deposits.
Best for: DTB existing customers; SME owners banking with DTB who want to consolidate savings.
Fixed deposit vs the alternatives
A fixed deposit isn't always the best place for your cash. Here's when each competing option wins:
| Alternative | When it beats an FD |
| Money-market fund | When you need liquidity. MMFs yield 8-10%, settle in 2-4 days, no penalty. |
| Treasury bills (91/182/364-day) | When rate > 10% and you can manage the auction process. T-bill interest is also subject to 15% withholding tax. |
| Treasury bonds (2-yr, 5-yr, 10-yr) | When bond yields exceed FD rates (frequently true in 2026). Infrastructure bonds attract NO withholding tax. |
| SACCO share capital | If you're a SACCO member â some SACCOs pay 15-20% annual dividends on share capital. |
| Tax-free infrastructure bonds | For high-income earners â the tax-free status adds ~150 basis points to effective yield. |
For most Kenyans, the best combination looks like:
- 6 months of expenses in a money-market fund (liquid, yielding 8-10%)
- Any excess long-term cash in a 36-month fixed deposit at the highest rate you can get (Family Bank 10%, I&M 9.75%)
- Retirement money in SACCO share capital or infrastructure bonds (higher yields, longer lock-up)
Don't put everything in one product. Don't put anything you might need within 12 months into a fixed deposit.
How to actually open a fixed deposit
The process is simpler than most bank advice implies.
- Pick your bank (use the table above).
- Open or already have a standard savings or current account at that bank. Most banks require this as the debit-source and settlement account.
- Walk in to a branch or use online banking if you're an existing customer. Required: National ID, KRA PIN, proof of source of funds if amount is large (>KES 1M).
- Fund the deposit by internal transfer, cheque, or incoming wire.
- Choose your tenure (3/6/12/24/36 months) and interest payment frequency (monthly, quarterly, or at maturity).
- Sign the fixed deposit certificate. You now own it â the rate is locked for the chosen tenure.
Most banks can set this up in under an hour for existing customers. For a new customer at a new bank, budget half a day â account opening takes longer than the FD itself.
Frequently asked questions
Which Kenyan bank has the highest fixed deposit rate in 2026?
As of April 2026, Family Bank has the highest published fixed deposit rate at 10.00% per annum on a 36-month tenure (minimum KES 50,000). I&M Bank is second at 9.75%. Rates change â always verify the current rate with the bank before committing.
Is fixed deposit interest taxed in Kenya?
Yes. The Kenya Revenue Authority applies a 15% withholding tax on fixed deposit interest, deducted at source by the bank and remitted to KRA. You receive the net amount. Infrastructure bonds and some specialised savings products are exempt from this tax â fixed deposits are not.
Are fixed deposits safe in Kenya?
Yes, when placed with a CBK-licensed commercial bank. The Kenya Deposit Insurance Corporation (KDIC) insures each depositor up to KES 500,000 per bank, per depositor, in the event of bank failure. For deposits above KES 500,000, consider splitting across multiple banks or assessing the bank's capital adequacy and credit rating before committing.
What is the minimum fixed deposit amount in Kenya?
Minimums vary by bank: Sidian Bank starts from KES 25,000. Family Bank, I&M, and most others start at KES 50,000. KCB, Equity, NCBA, and Standard Chartered typically require KES 100,000 minimum. Some private banking tiers require KES 1M+.
Can I withdraw a fixed deposit before maturity?
Yes, but you'll pay a penalty. Most banks charge 1% of the principal plus forfeit of accrued interest. Some banks recalculate interest at a savings-account rate (typically under 2%). If there's a chance you'll need the money, consider a money market fund instead â MMFs yield similar rates with settlement in 2-4 days and no penalty.
Is a fixed deposit better than a money market fund in Kenya?
It depends on the rate and your liquidity needs. Fixed deposits offer slightly higher rates (up to 10% vs MMFs at 8-10%) with full rate certainty, but lock your money. Money market funds are liquid, variable-rate, and don't penalise early withdrawal. For money you won't need for 36+ months and the highest possible return, FDs win. For emergency funds or money you might need within 12 months, MMFs win.
How often is interest paid on a fixed deposit?
Most Kenyan banks offer three options: monthly, quarterly, or at maturity. Monthly payouts work well for retirees needing income. At-maturity payouts compound best â the full principal sits earning interest for the entire term. Check that your chosen frequency matches the headline rate; some banks pay lower rates on monthly-payout deposits.
Can foreigners open a fixed deposit in Kenya?
Yes. Most Kenyan banks accept foreign nationals with valid passport, KRA PIN (which can be issued to foreign residents), and proof of income source. Some banks have specific diaspora FD products for non-resident Kenyans â Stanbic, I&M, and Standard Chartered are the most common options for this segment.
Data sources: Published rate cards of Family Bank, I&M Bank, HF Bank, Equity Bank, DTB Kenya, NBK, Bank of Africa, Victoria Commercial, Sidian Bank, Prime Bank, NCBA, and KCB (all verified April 2026). Central Bank of Kenya Monetary Policy Committee rate decision 10 February 2026 (CBR 8.75%). KDIC insurance limits per the Kenya Deposit Insurance Act. KRA withholding tax rates per the Income Tax Act. We update this ranking each quarter. Last verified April 19, 2026.