Understanding Kenya's Banking System: A Guide for Money Senders

When sending money to a Kenyan bank account, it helps to understand the banking landscape. Here's what you need to know.

Major Banks in Kenya

Tier 1: Large Banks

Tier 2: Medium Banks

Tier 3: Smaller Banks

Many smaller banks serve niche markets or specific communities.

Bank Account Types

Current Account (Checking)

• For frequent transactions
• Checkbook available
• Higher minimum balance
• Business-friendly features

Savings Account

• Most common for personal use
• Interest on deposits
• Lower minimum balance
• Good for receiving remittances

Fixed Deposit Account

• Higher interest rates
• Money locked for period
• Not ideal for receiving transfers

Foreign Currency Account

• Some banks offer USD accounts
• Can receive USD directly
• Exchange when needed
• Available at major banks

How International Transfers Reach Kenya Banks

Digital Provider Route (Wise, Remitly, etc.)

1. You send to provider
2. Provider converts USD to KES
3. Provider's Kenya partner initiates local transfer
4. Money arrives in recipient's account

Time: 1-2 business days

Cost: Low

Traditional Wire Route

1. Your bank sends SWIFT message
2. May go through intermediary bank
3. Kenya correspondent bank receives
4. Transfer to recipient's bank

Time: 3-5 business days

Cost: High ($25-75 total)

SWIFT Codes for Major Banks

Bank-M-Pesa Integration

How It Works

Most Kenyan banks integrate with M-Pesa:

• Transfer from bank to M-Pesa
• Transfer from M-Pesa to bank
• Both usually free or low cost

Why It Matters for You

Your recipient can:

1. Receive in bank account
2. Transfer to M-Pesa for daily use
3. Keep savings in bank

Popular Integrations

Opening a Bank Account in Kenya

For Residents

Requirements:

• National ID or passport
• Proof of address
• Passport photos
• Initial deposit (varies)

Time: Same day to few days

For Non-Residents (Diaspora)

Some banks offer diaspora accounts:

• Equity Bank: Diaspora account available
• KCB: Foreign currency accounts
• Co-op Bank: Diaspora services

Requirements vary but typically:

• Passport copy
• Foreign address proof
• Some require in-person visit

Banking Hours

Standard Hours

• Monday-Friday: 9:00 AM - 4:00 PM
• Saturday: 9:00 AM - 12:00 PM (some branches)
• Sunday: Closed

International Transfer Processing

• Processed during business hours
• Transfers after 2 PM may process next day
• Weekend transfers: Monday processing

Fees and Charges

Account Maintenance

Transfer Fees

Receiving International Transfers

• Wire transfers: May charge $10-30
• Via providers (Wise, etc.): Usually free

Mobile Banking

Bank Apps

All major banks have mobile apps:

• Check balance
• Transfer money
• Pay bills
• Receive notifications

USSD Banking

For phones without apps:

• Dial bank code (e.g., *247# for Equity)
• Menu-driven banking
• Works on any phone

Bank Selection for Receiving Transfers

Best for M-Pesa Integration

1. Equity Bank: Seamless M-Pesa integration
2. KCB: Strong M-Pesa connection
3. Co-op Bank: Easy transfers

Best for Large Amounts

1. Standard Chartered: International experience
2. Stanbic: Corporate banking focus
3. ABSA: Strong for large transfers

Best for Diaspora

1. Equity Bank: Dedicated diaspora services
2. KCB: Foreign currency options
3. I&M Bank: Good customer service

Central Bank of Kenya (CBK)

Role

• Regulates all banks
• Manages currency (KES)
• Sets monetary policy
• Supervises mobile money

For You

• Banks are regulated and safe
• Deposits protected (up to KES 500,000)
• Exchange rates influenced by CBK policy

Common Issues and Solutions

"Bank details incorrect"

Solution:

• Verify account number digit by digit
• Confirm bank name exactly
• Check branch code if required

Transfer takes longer than expected

Common reasons:

• After banking hours
• Additional compliance checks
• Incorrect details causing delay

Solution: Contact provider support with transaction ID

Recipient says not received

Steps:

1. Confirm transfer shows "delivered" with provider
2. Have recipient check with their bank
3. Verify account details match exactly
4. Contact provider support

Tips for Smooth Bank Transfers

1. Get exact account name as registered
2. Verify account number by asking recipient to check
3. Note the bank and branch correctly
4. Send during business days for faster processing
5. Keep transaction reference for tracking

Conclusion

Kenya's banking system is modern and well-integrated:

1. Major banks are reliable and regulated
2. M-Pesa integration provides flexibility
3. Digital transfers (Wise, etc.) are faster than wires
4. Bank deposits are good for larger amounts
5. Always verify details before sending

Understanding the system helps your transfers arrive smoothly.

Compare bank transfer options on our money transfer page.