Bank Review—Everything you need to know about KCB Bank

KCB Bank Kenya Limited, a subsidiary of KCB Group, is a commercial bank in Kenya that offers conventional and interest-free banking to individuals, businesses, and corporations.  

The formerly government-owned bank currently has an asset base of KES 858.5 billion ($7,290,870,486.50),  205 branches, 423 ATMs,  22,916 merchants and agents, 5,104 employees, and 28.1 million customers.

This article covers the products and services offered by KCB Bank Kenya to individuals and businesses.

History

In July 1986, the National Bank of India (NBI) established a subsidiary of its bank in Kenya. The subsidiary was merged with Grindlays Bank in 1958 to form the National and Grindlays Bank (NGB).

In 1970, the Kenyan government acquired 100% of the shares in the NGB and it became the largest commercial bank in Kenya.

After the acquisition, the bank was renamed the Kenya Commercial Bank (KCB). The Kenyan government has sold most of its shares since then and it currently has %17.31 shares in KCB bank.

KCB Bank Kenya expanded to other east African countries and acquired other companies. In 1972, KCB acquired Savings & Loan Kenya Limited, which specialized in mortgage finance.

In 2012, it became the first bank in Kenya to have branches in all the African Great Lakes countries.

After reconstructing due to Kenya Kenya Finance Act No. 57 of 2012, the KCB group incorporated a subsidiary, KCB Bank Kenya Limited.

KCB Group became a non-trading holding company while KCB Bank Kenya operated the group’s Kenyan banking business, assets, and liabilities.

KCB Kenya’s products and services

KCB Bank offers conventional and interest-free bank accounts, loans, insurance, and investment products and services to individuals and businesses. These products are services are:

KCB mobile bank accounts

These are mobile accounts individuals available to M-Pesa account holders. KCB mobile bank accounts allows its owners to save, borrow money, and pay their bills through M-Pesa.

There are two types of KCB mobile bank accounts: KCB M-Pesa and KCB M-Benki.

KCB M-Pesa

This is a mobile account that allows individuals to save and borrow money with their mobile phones.

KCB M-Pesa account holders can withdraw and deposit up to KES 150,000 ($1,283.20) in their account. They also enjoy up to 6% p.a interest on their locked savings.

There are two types of savings plans available to KCB MPesa accounts: target savings and fixed savings.

How to create a KCB Mpesa account

• Go to your M-PESA menu
• Select Loans & Savings
• Select KCB M-PESA
• Select Activate

How to create a KCB MPesa target savings account

• Go to your M-PESA menu
• Select Loans and Savings
• Select KCB M-PESA
• Select Fixed Savings
• Select Target Savings Account
• Select Open Account
• Select KCB MPesa as your source of funds
• Input the target amount you want to save and the savings period (target amount needs to be a minimum of KES 1000 ($8.55) and a minimum of 1 month)
• Enter initial deposit amount (not less than KES 50 ($0.43))
• Enter your M-PESA PIN and confirm the transaction

How to create a KCB MPesa fixed-savings account

• Open the M-PESA menu on your phone
• Select Loans and Savings
• Select KCB M-PESA
• Select Fixed Savings Account
• Select Fixed deposit
• Select Open Account
• Choose KCB Mpesa as the source of funds;
• Input the amount you want to save and the savings period (target amount needs to be a minimum of KES 500 ($4.28) and a minimum of 1 month)
• Input your M-PESA PIN and confirm the transaction

You can learn more about a KCB M-Pesa account here.

KCB M-Benki

This is a mobile bank account that allows its owners to transfer money to any account, lock their savings for a while, and borrow money with their mobile phone.

K-Benki account holders can also earn up to 6% interest p.a on their locked savings.

How to open a KCB M-Benki Account

• Go to MPESA Menu
• Select Payment Services
• Select Pay Bill Option
• Input KCBs pay bill number 522522
• Input the account type you want to open
• Choose your type of ID and its Number e.g. National ID card and its number
• Input the amount you want to deposit
• Input your MPESA PIN
• You will receive two SMSs that would contain your M-Benki account number, user ID and PIN.

M-Benki account holders can access their account by dialling *522#.

KCB personal bank accounts

These are savings and current bank accounts for individuals living in Kenya. Some personal bank accounts are

Current account

A KCB current account is a transaction account that gives account holders access to Mobi and kopa bill loans.

KCB current account holders can also use the bank’s cash deposit machine to deposit money into their account.

A maintenance fee of Kes 300 ($2.57) is charged to the account every month and a minimum of KES 1000 ($8.55) is required to open the account.

Requirements

• A Kenyan ID or passport
• Your KRA PIN certificate

You can open a KCB current account by visiting a KCB Bank Kenya branch near you with the required documents.

Jiinue Account

A Jiinue account is for salary earners. Account owners enjoy discounted rates on transactions and they can also access loans of up to KES 2 Million.

A maintenance fee of KES 50 ($0.43) is charged to the account monthly and a minimum amount of Kes 200 ($1.71) is required to open the account.

Simba savings account

This is an interest-earning account. The bank pays up to 5% p.a. interest on amounts deposited in the account. Account owners can only withdraw from the account once a month and a minimum amount of KES 1000 ($8.55) is required to open the account.

Other types of KCB Bank personal accounts are goal savings account, bankika personal account, premium bank accounts, student account , investment accounts, forex accounts, and cub account.

How to open a KCB personal account

• A Kenyan ID or passport
• Your KRA PIN certificate

You can open a KCB personal account by visiting a KCB Bank Kenya branch near you with the required documents.

KCB personal loans

These are loan services offered to individuals in Kenya. Some of KCBs personal loan products are:

Personal unsecured non-check-off loan

Personal unsecured non-check-off loans allow individuals to borrow between KES 20,000-KES 2 Million ($171.07-$17,109.59) for a maximum period of 36 months.

Requirements

• A Kenyan ID or passport
• Your latest pay slips
• Proof of source of income (for self-employed individuals)
• You must be an active KCB Bank account holder for at least 6 months

Rates and fees

The interest rate is 13% (CBR rate of 9% plus bank variable margin of 4%)

Negotiation fee is 2.5%

Excise duty is 20% of the negotiation fees

Vooma Loan

This is a quick loan that KCB account holders can apply for with a mobile phone. You can borrow between Kes 1,001 and Kes 300,000 ($8.56-$2,566.40).

Requirements

• You must have an active KCB account for at least 6 months
• You must have deposited money into your account at least 4 times
• You must be registered on KCB mobile banking platforms.

Rates & Fees

This is a one-month loan at a total cost of 6.91%.

Salary advance

This is an instant loan available to KCB Bank account holders that earn a monthly income.

Requirements

• A Kenyan ID or passport
• Your latest pay slips
• An active KCB Bank account for at least 3 months

Rates and fees

• The interest rate is 13% (CBR rate of 9% plus Bank Variable margin of 4%)
• The negotiation fee is 2.5%
• Excise duty is 20% of the negotiation fee

Other types of personal loans are secured loans, personal unsecured check-off loan, masomo loan, kcb m-pesa loan, and home loan.

You can apply for a personal loan through KCB Bank’s mobile banking platforms or by visiting a KCB Bank Kenya branch near you with the required documents.

KCB business accounts

These are bank accounts offered to sole proprietorships, SMEs, agri-businesses, and cooperative groups (Chamas). Some business bank accounts are:

Current account

This is a current account for SMEs that make frequent transactions and payments. Business current accounts also access cheque books, free monthly statements, and unsecured loans of up to 3 million KES ($25,660.76). No amount is required to open the account.

Requirements

• The business Certificate of Registration/Incorporation
• KRA PIN Certificate
• VAT Certificate
• A valid trading license
• The company's partnership deed (if applicable)
• The board’s resolution (if applicable)

Simba savings account

This is a type of business savings account for SMEs. Simba savings accounts enjoy free deposits, interests of up to 5% p.a, and one withdrawal a month. No monthly fee is charged to the account.  A minimum amount of KES 1000 ($8.55) is required to open the account.

Requirements

• Kenyan ID or passport
• The business certificate of registration/incorporation
• KRA PIN Certificate
• VAT Certificate
• A valid trading licence
• The company's partnership deed (if applicable)
• The board’s resolution (if applicable)

Goal savings account

This is a type of business savings account for SMEs. Goal savings accounts owners enjoy interest on their profits and access to loans at competitive rates. A minimum amount of KES 1000 ($8.55) is required to open the account.

Requirements

• The business Certificate of Registration/Incorporation
• KRA PIN Certificate
• VAT Certificate
• A valid trading license
• The company's partnership deed (if applicable)
• The board’s resolution (if applicable)

Bankika Business

This is a pay-as-you-go business account for start-ups. Bankika business account also offers loans at competitive rates to account holders.

Requirements

The requirements depend on the type of business. They are:

Sole proprietorship

• A valid Kenyan ID or passport
• Your KRA PIN certificate
• One passport photograph
  

Partnerships

• A valid Kenyan ID or passport
• KRA PIN certificates of each business partner
• One passport photograph
• Partnership deed/partnership resolution indicating signatories and signing mandate
  

Limited Liability Companies

• A valid Kenyan ID or Passport.
• One passport photograph of each of the company’s board of directors.
• KRA PIN certificate
• Certificate of incorporation
• Memorandum and articles of association
• A Board of Directors resolution to open an account in KCB
• Audited account statements for businesses that have operated for more than one year
  

Other types of business accounts are learning institution account, community account, telco dealers and agents account, agri-business account, small business account, Chama accounts, and entrepreneur account.

Businesses can open a business account by visiting a KCB Bank Kenya branch with the required documents.

Business loans

KCB Bank Kenya offers loans to small businesses, SMEs, Chama groups, and agri-businesses. Some of these loans are:

Boresha Biashara Loan

These are loans made for micro-businesses to meet their capital needs. Micro businesses can borrow up to KES 1 million ($8,553.59) for a maximum period of 36 months.

Requirements

• The business must have a banking relationship with KCB Bank for at least 6 months
• The business must be at least one year old
• Loans of up to KES 500,000 ($4,275.33) require collateral in the form of household/business assets and a guarantor
• Loans above Kes 500,000 require collateral in the form of title deed, cash cover, livestock, log book, shares, etc.

Rates and fees

KCB Base rate 13% per annum

Negotiation fee is 3%

Insurance fee is 0.85%

Tuungane Investment Loan

These are loans for cooperative and welfare groups to purchase bonds, shares, properties, or other investments. The loan has a maximum repayment period of 72 months and groups can borrow up to KES 250 million ($2,138,031.30). The loan is open to both registered and unregistered groups.

Requirements

• The group must have a minimum of 5-10 members
• The group must show their ability to repay the loan
• New groups must have at least 6 months banking relationship with KCB Bank

Rates and fees

Interest rate of 13% (CBR rate 9% plus Bank variable margin of 4%)

A one-off loan negotiation fee which is 3% of the loan amount

Other types of business loans are Bodaboda/Tuktuk loan, Jaza Duka loan, Soko/Market Loan, retailer finance, Boresha plus, agri-business loan, SME loan, and finance loans

Businesses can apply for a KCB business loan by visiting a KCB Bank Kenya branch with the required documents.

KCB Bank Kenya also offers interest-free bank accounts, loans, and investment products and services to individuals, groups, and businesses interested in banking according to shariah’s principles. You can learn more about its interest-free banking products here or by visiting a KCB Bank Kenya branch near you

KCB Kenya’s insurance products

KCB Bank offers insurance to individuals living in and outside Kenya through its subsidiary, KCB Bancassurance Intermediary, which is regulated by Kenya’s Insurance Regulatory Authority.

KCB Bancassurance Intermediary offers health insurance, motor insurance, property insurance, general insurance, and life insurance.

You can learn more about KCB Bank’s insurance products, their requirements, and how to get started by visiting the KCB Bancassurance Intermediary website or by visiting a KCB Bank Kenya branch near you.

KCB Kenya’s investment products and services

KCB Bank Kenya offers investment products and services through its intermediary, KCB Capital Limited.

KCB Capital Limited is an investment subsidiary of KCB Group. It was established in 2013 and it provides “strategic and financial advice” to individuals, institutions, and governments.

KCB Capital Limited's products and services are divided into 3 main categories:  research, brokerage and advisory services. You can learn more about KCB’s investment subsidiary here.

Diaspora banking

KCB Bank Kenya offers banking services to Kenyan individuals and groups in the diaspora. Its diaspora banking products and services are:

KCBs diaspora current account

A diaspora current account allows Kenyans in the diaspora to open accounts with foreign currency and make local and international transactions. A minimum of KES 1000 ($8.55) or its equivalent in other currencies is required to open the account.

Requirements

• You must reside abroad
• A Kenyan Passport or ID
• KRA PIN certificate
• A notarized proof of address (utility bill, driving license. etc)
• Duly signed FATCA form for USA citizens
• One passport photograph

Goal account

This is an interest-earning savings account that allows Kenyans in the diaspora to lock their funds for a minimum of 6 months. The funds in the account can also be used to apply for KCB Bank loans.  A minimum of KES 1000 ($8.55) or its equivalent in other currencies is required to open the account.

Requirements

• You must reside abroad
• A Kenyan Passport or ID
• KRA PIN certificate
• A notarized proof of address (utility bill, driving license. etc)
• Duly signed FATCA form for USA citizens
• One passport photograph

Other types of Diaspora bank accounts are cub account, student account, transactional account, Chama diaspora account, and Simba savings account

KCB's diaspora mortgage

Kenyans in the diaspora can build or purchase a house in Kenya with KCB’s diaspora mortgage loan. The mortgage plan is available in Kenya Shillings, US Dollars, and GBP.

Requirements

• You must live abroad
• Your Kenyan ID and passport
• KRA PIN certificate
• You must have an active KCB Bank account
• Your salary account bank statements for the last 6 months
• Your pay slips for the previous 3 months
• A letter from your employer confirming your employment status (permanent or contract basis)
• Your resident country’s equivalent of a CRB certificate
• Spousal consent if applicable (form provided by KCB)
• Single applicants should present a sworn affidavit
• 2 passport photographs
• The sale agreement witnessed by a lawyer, preferably a lawyer residing in Kenya
• The title of the purchased/charged property being purchased (minimum lease term is 35 years)
• Valuation report of the property
• Filled in insurance form (to be provided by KCB Bank)

KCB's diaspora insurance products

Kenyans in the diaspora can access KCB Bank’s insurance products and services. KCB’s diaspora insurance covers include emergency medical cover, personal accident, inbound travel, death and funeral cover.

Requirements

• You must reside abroad
• A valid Kenyan Passport or ID
• One passport photograph
• KRA PIN certificate
• Notarized proof of address (utility bill, driving license, etc.)
• Duly signed FATCA form (for US citizens)

You can get started by downloading the required forms here or by visiting a KCB Bank diaspora agent near you.

How to access KCB Bank Kenya’s products and services

Individuals and businesses can send and receive money, save and borrow money, pay their bills, and carry out different banking activities with KCB in different ways.

KCB mobile banking

KCB Bank Kenya customers can access the bank’s services on their mobile phone through a USSD code (*522#) or the KCB mobile bank app, which is available on both IOS and Android devices.

With KCB’s mobile banking, individuals and businesses can:

• Manage their account
• Pay their bills
• Apply and manage their mobile loans
• Buy airtime
• Transfer money to bank accounts and mobile money wallets
• Earn rewards (Simba points)

How to register for KCB mobile banking

To register for KCB’s USSD service (*522#):

• Visit any KCB Bank branch near you to register for KCB mobile banking. After registering, you will receive a text message asking you to activate your KCB mobile banking
• Dial *522# and input a 4-digit PIN
• Accept KCB Bank’s terms and conditions

To register for KCB‘s mobile bank app, simply download the app from the Playstore and Appstore and follow the prompts on the screen.

What is MobiChama

MobiChama is for groups that have a KCB bank account and are registered on the bank's mobile banking platforms. MobiChama allows businesses to manage and track the loans, withdrawals and deposits made with their account.

What is MobiGrow

MobiGrow is a mobile bank account for farmers that can be accessed by dialling *225# on their mobile phones. MobiGrow allows farmers to carry out banking activities through M-Pesa.

KCB Kenya’s physical locations

You can access KCB Bank’s products and services by visiting a KCB Bank branch, ATM, or agent near you. Kenyans in the diaspora can also find a KCB diaspora agent in certain locations worldwide.

You can perform the following bank activities at a KCB Bank physical location:

• Manage your KCB bank account
• Withdraw and deposit money
• Pay your bills
• Transfer funds locally and internationally
• Sign up for KC Bank’s products and services
• Pay your taxes

KCB Internet Banking (KCB iBank)

KCB's internet banking platform (KCB iBank) allows businesses and individuals to manage their accounts, make local and international transfers, and request for cards. You must have a KCB bank account to use the KCB iBank platform.

You can register for KCB iBank by submitting the filled individual or business online banking application form at a KCB Bank branch near you.

Frequently asked questions

What is KCB Bank Kenya’s website

You can visit KCB Kenya’s website here.

You can also visit its Meta(Facebook), Twitter, Instagram, YouTube, Whatsapp, and LinkedIn pages.

What is KCB’s paybill number

KCB’s paybill number is 522522

What is KCB’s customer care number

You can reach KCB Bank Kenya’s contact centre by calling +254711087000, +254732187000, and +254202287001.

You can also send a message to KCB via WhatsApp at +254711087087 or by email at contactcentre@kcbgroup.com

How to transfer money from Mpesa to a KCB account

• Go to your M-PESA menu,
• Select Lipa na M-PESA
• Input KCB Bank’s PayBill number 522522
• Input the recipient’s KCB account number
• Input the amount you want to transfer
• Input your M-PESA PIN
• Confirm the transaction and press send

Where can I download the KCB app

You can download the KCB mobile app from the Playstore and Appstore

What is KCB’s SWIFT code

KCBLKENX

What is KCB’s USSD code

*522#

Conclusion

KCB Bank Kenya Limited offers a wide range of conventional and Islamic banking products for its customers.

Their website also does a good job of explaining the benefits of each product and the documents needed to sign up.

But like most big banks, KCB Bank’s customer service is poor. Luckily, their mobile and internet banking platforms function properly most of the time.

Sources

https://en.wikipedia.org/wiki/KCB_Bank_Kenya_Limited