Having identified the importance of Corporate Banking, majority of banks create specific departments to ensure that their needs are met. Given the magnitude of their transactions and their importance these companies need a designated Relationship Manager.

Corporate Banking

The relationship manager provides advisory services on for example, investments and Capital decisions. The relationship manager also tries to identify change in the corporate customers’ need the relationship manager comes up with innovative solutions to meet this corporate banking need.

Managing this Relationship is slightly different from managing an SME as the failure or success of a corporate has a great impact on the Bank. So whether these Corporate Companies have credit facilities or not, the Relationship Manager should always be in touch with the following areas of the company

Corporate banking- Governance of the Company

This includes the members of the Board of Directors, the Board of Management and the management structures in place. The shareholding structure of the company and the bank also investigate the integrity of the team and what impact the corporate would have on the reputation of the company. The quality of governance is very critical as it can help determine the future of the company.

Corporate banking -Recovery Management

This is key to the stability of the business and it is important to establish in general if the corporate has a policy on the recovery from any unforeseen factors that would greatly affect the business. In other words the disaster recovery plan or the business continuity plan is very important and must be disclosed to the bank.

Corporate banking-Technology

This affects database management, establishing whether a company is up to date in technology, which is changing rapidly. Updated technology greatly ensures good database management, resulting and leading to accurate reporting, increasing transparency and accountability. Technology may also be used to reflect the financial health of a corporate.

Corporate Banking-Risk Management

Establish whether the corporate has identified the risks that could greatly affect their business. Confirm the measures that have been put in place to manage the risk. These measures must be well documented. The corporate should have unit monitoring for the ever increasing risks.

Corporate Banking -Management of Manpower

Establish whether the corporate optimizes manpower resources in terms of numbers, knowledge and even skill. This in turn maximizes productivity, improves quality of operations.

Given the current economic crises that has greatly affected many corporate companies, it would be prudent for the banking industry to keep in touch with their corporate customers operation  by providing relevant corporate banking solutions.

What are demand deposits in Kenya

Demand Deposits in kenya

Demand deposits in Kenya are also known as call deposits. The investor does not have to give notice to withdraw their funds from the financial institution. The financial institution does not give high interest rates for demand deposits in Kenya.

Most demand deposit in Kenya accounts are charged monthly fees for maintenance. The interest rates in these demand deposits are usually lower than the bank charges especially, for small value investments. It is therefore in the interest of the investor to determine when they would require demanding or calling their deposits and if it is more than seven days, considering time deposits as an investment option.

The types of demand deposits that will be mentioned are savings accounts, money markets and current accounts. They are explained below

Savings accounts type of demand deposits in Kenya

Savings accounts are demand deposit accounts that are used by investors to accumulate funds to perform certain tasks. These accounts may also be used to build retirement benefits. The returns or interest paid on these time deposits are average. The savings accounts are considered a safe way of investing for the future.

Money market type of demand deposits in Kenya

Money market accounts are demand deposits where an investor trades in money and not stocks. The investor’s interest rate is not assured and it changes daily. These are seen as risky investments and the investor could loss even part of the principle amount invested. The bank charges minimal amounts for bank charges on these demand deposits.

Current account type of demand deposits in Kenya

Current accounts are also referred to as checking accounts and are demand deposits. The investor usually does not earn any interest for this kind of investment. The bank charges and fees vary depending on the type of checking account, for example, a private banking investor may have higher charges compared to an ordinary investor.

The advantage of demand deposits is that money can be withdrawn immediately. With the advent of mobile banking and ATM card services, the investor has access to their funds any time of day or night. Demand deposits are offered by all banks in Kenya. The rate of interest or return varies from bank to bank.

An investor has to decide the target and reason for the investment choice. It is advisable for an investor to talk to the bank officers and find out about the demand deposits in Kenya that will suit all their

What are time deposits in Kenya

Time deposits in Kenya are investments that are placed the funds are not easily available to the investor before the time of the deposit has elapsed or expired. The time deposits in Kenya may be for as short as 7 days or as long as the options are availed. Time deposits are also referred to as fixed deposits or term deposits.

Time deposits in Kenya

The investor gets a fixed interest at the end of the investment period. This amount is higher the longer the funds are invested. For example, the investor will earn a higher interest for depositing the funds for 1 year than they get for 1 month. The very long term time deposits may not give very attractive interest rates compared to the middle term time deposits.

When the time agreed on the time deposit in Kenya lapses, the investor can either roll over the investment, that is, invest the funds again or the amounts may be returned to the investor.

The investor of time deposits in Kenya is charged a penalty fee if they withdraw their funds from the time deposit before it matures. In most cases the investor losses the interest they had negotiated and even have to refund the bank as part of the penalty. When investing in time deposits, the depositor must consider what the time span he or she has idle funds for, that can be put aside to earn higher interest.

There are three types of time deposits traditional certificates of deposits, liquid certificates of deposits and broker bought certificates of deposits. These are explained below:

Time deposits in Kenya – Liquid certificates of demand

Liquid certificates of demand are time deposits that the investor negotiates with the bank on amounts that can be withdrawn before the maturity of the time deposit. The amounts that one can withdraw are decided by the bank and are usually a percentage of the deposited funds. Sometimes the bank also restricts the number of times the investor can withdraw. The bank may allow one withdrawal per quarter. If the investor requires taking more than the bank allows, the investor is then subjected to a penalty fee.

Time deposits in Kenya – traditional certificates of deposits

Traditional certificates of deposit are time deposits where the investor is charged a penalty if they withdraw before the maturity of the deposit. The funds could be invested for even five years.

Time deposits in Kenya – broker bought certificates of demand

Broker bought certificates of deposits are time deposits that are sold to investors by brokers. The brokers buy the certificates and they sell them to investors for a profit or commission. The time deposits can be for a period from seven days to one year.

It is important to make your money work for you. You must look for save investment options that can bring a return higher than what the bank savings accounts may offer.  Time deposits in Kenya can be used by people who are interested in investing and making good returns on investment.

What is Current Account in Kenya?

A current account in Kenya is a bank account that is given to an account holder upon successful application for the account. A Current account allow the account holder to deposit or withdraw cash. Current account in Kenya is used for every day running. Two or more people can open one account which is known as a joint accounts and each member of the account is given a cheque book and an ATM card. The ATM card is linked to the same current account number but the card numbers are different for each member.

Current Account in Kenya

The deposit made could be in the form of cash notes and coins, cheque deposits and funds transfers. Funds transfers could be wired funds from abroad or mobile phone electronic deposits. When the customer needs to withdraw from their current account, they could use the following options: use a cheque and approach the bank branch to cash the cheque, use an ATM or debit card at the ATM machine and using direct debits to pay their bills or shopping.

Who can open a current Account in kenya?

Most people who are of legal age can open a current account. There are some people who are black listed for one reason or another, who cannot open a current account. Some reasons for black listing current account applicants include Fraudulent activities, drug trafficking and money laundering.

Many of the banks in Kenya have current accounts facilities. A list of the banks and their branches with these accounts can be found in the banking industry in Kenya write up.

Tips on how to make a decision on the best current account in Kenya

Before making any decision on which banks’ current account to apply to, it is important to first decide what you want the bank to do for you. It is very frustrating to open a current account only to realise that the offering in the bank you choose is not what you were looking for. The bank may not be able to meet your needs, so you have to start looking for a new bank, which is time consuming. Have a check list with your preferences as you research on the various banks. Your credit rating will only start after your account has been opened and moving from one bank to another does not improve your credit score.

It is important that the you understand what a current account in Kenya is and how it operates.

Sources of funds for Womens banking in Kenya

• Salaries and wages: Women who are employed get a salary from which they are able to put aside a percentage as savings.
• There are also women who engage in business enterprises. The women put aside some part of their profits as savings
• Sales and bargaining: Before women shop they look for the best prises. Most men do not understand this idea of shopping but a woman can spend the day shopping. The women are looking for the best price so that they can save some money from their shopping budget. This money is either taken to the bank or for women in rural areas; they keep the money in a safe place like an old jar in one of the kitchen shelves
• Women also join with others either from their churches or village and start savings clubs. Depending on the clubs reason for being and investment needs, the women contribute a minimal amount. The clubs usually operate a ‘merry go round’ club. The contributed amount is given to one or two women in the group. The members of the club may opt to save the collections received per month in a bank and buy a piece of land or building.
• Women get gifts from their children or family members in form of cash. They bank these monies in their bank accounts.

Womens banking  in kenya likely hiding places for cash

• In a jar in the kitchen
• In the granary or store
• In the bank
• In sacks of maize or beans or dried grains

The banking industry in Kenya has finally acknowledged the efforts made by women and have devoted products solely for women. The products are in all categories. The banks are trying to tap the monies that women safe in jars and under their mattresses. These monies when added together make significant deposits and would be used by banks to increase their lending. Womens banking in Kenya has come of age.

How to get Safe Deposit Lockers

The banks and financial institutions offer these boxes. They are usually of small, medium and large size. The size preference is noted on the application form. The safes are not very large and mainly about 20 inches length, 15 inches wide and 10 inches in depth.

Safe deposit lockers

The banks charge for safe deposit boxes. The amounts differ from bank to bank and range from a minimum of Kenya shillings 2,000 per annum. Some banks also require that a refundable deposit amount is banked with the bank before the safe deposit box becomes active.

Safe Deposit Lockers

The bank is not aware of the documents or items in the safe deposit boxes. When applying for a safe deposit box, you are required to declare that: the nature of the documents or items in the box is not illegal items like explosives and guns. The bank is indemnifies by your signature to this clause.

Applicants for safe deposit lockers

For individuals all the banks require is an original Identification document and a copy of the same.  For corporate or limited liability companies, the application process requires a copy of the resolution of the board, with a company seal. For partnerships, a letter must be written to the bank stating the intention to rent the safe deposit box. The letter has to be signed by at least two directors and it must be accompanies by the application letter. For Non Governmental organisations, clubs and societies minutes showing the discussion and signed by the at least two directors must be presented.. The minutes must also name the appointed agents for operating the safe deposit box.

Advantages of Safe Deposit Lockers

• Security of your valued belongs like wills and jewellery
• The safe deposit lockers are fire proof
• Access to items in the safe deposit box is within the banking hours.
• Secrecy and privacy for the owner of the safe deposit locker

The owners of the safe deposit lockers are issued with a 2 sets of keys for the safe deposit lockers. The individual owner of the lockers need to include their safe deposit lockers details as it is usually not known to family members.

Banks and financial institutions should advertise more about safe deposit Lockers especially with the disasters of fires and theft that are on the increase.

personal bank accounts in kenya

The central bank of Kenya as a regulator of all banks, and with Kenya Bankers Association has some requirements that all Kenyan banks must meet as they bring in new personal bank accounts holders. When banking in Kenya, the banks are required to Know their customers and hence the need to supply the bank with the documents.

Complete application forms for personal bank accounts in Kenya

The Kenyan banks all have personal bank accounts opening forms that require to be completed. Most of these forms ask for information that is backed up with the documents that have been requested. The account opening form is very important as it identifies the type of account that you want. The form usually has the terms and conditions of having the personal bank account. These are the legal requirements and rules that govern your relationship with the Kenyan bank. The form must be signed by the applicant. The details captured in this form are used by the bank to send you statements and other communication. It is important that you give correct details in the form as requested.

Identification for personal bank accounts in Kenya

Have the identification papers ready as you approach the bank that you are interested in to apply for your persoanl bank accounts. The bank will require the original papers and copies of the same. The documents are usually the National Identification or a Passport. The banks prefer to use the National Identification to a passport since all Kenyans who are over eighteen years of age should have one.

Photos for personal bank accounts in Kenya

Kenyan banks require photos as a way to confirm that the persons presenting themselves to the bank to apply for the personal bank accounts are the genuine person. Some banks photograph customers in their banking halls and so do not require you to carry the photo. The photos should be current copies.

Evidence of income.

The Bank would like to know how you have obtained the funds you will be depositing. This is important to curb criminal activities such as fraud and money laundering. Most employed individuals use payslips.

Minimum account opening balance.

Depending on the account being opened, the bank will request for the required amounts to be banked or a completely filled out deposit form accompanied by the cash requirement to be part of the account opening forms. Some accounts are opened on Zero balance.

Physical evidence

In recent times, the Banks also require that applicants give copies of their water or electricity bills. These are required to confirm the physical residence of the customer. Where the applicant does not have the bill in their names, the banks require a letter from the Landlord. The Landlord writes to confirm that the applicant is a tenant. The applicant is also required to give a map or directions to the physical location where they are tenants.

Reference.

Many banks require that the customer be referred to them. This requirement is undergoing many changes with the many changes in the banking industry. The reference may be given by the employer, introducing you to the bank. The account opening staffs usually act as the referral agents.

In conclusion, though the documents and requirements seem cumbersome, many are required by the Kenyan Banking regulators. The above are requirements are for citizens. Foreigners have a few extra documents they have to provide. To have the personal bank accounts in Kenya opened quickly, approach the bank with the above documents.

What are Children bank accounts

Children bank accounts are an important way to train up the young generation on savings and the value of planning for the future. Kenyans have been accused as a nation of people who do not know how to save.

Many Kenyans say they do not save because they have and earn so little. The discipline of saving has to start from the little that you have. This may mean that you are putting away even as little as 10 shillings a month. With the competitive nature of banking in Kenya, to open the children bank accounts has become easy. For as little as 200 shillings some banks will open the children bank accounts.

The children bank accounts are mainly applied for by the parents or guardians because the children under 18 years of age are considered as under age. Legally these children cannot have contractual dealings with a bank. The bank usually gives a ‘piggy bank’ to the child, to allow them to start saving their monies.

The parents need to look at children bank accounts that have high interest rates and other benefits like cheaper or free school fees cheques and discounts on school books or uniforms. Children bank accounts that do not any type of maintenance fees are more advantageous.

Introduce the children to their account and tell them about the account. Let them actually take the money they have to save to the bank. The account will then become a reality for them. If they are saving for a particular item, take them to the bank and let them see you withdraw the money to purchase the item. This makes them believe that the account belongs to them. The children bank accounts also show the child the importance of saving for items they want. The children stop thinking that it is easy to get money all the time and that when parents do not have money they cannot purchase items they want.

Some parents use the children bank accounts as their own savings accounts and do not let the children know about these accounts. some parents use the accounts as savings for school fees, medical for the child and other emergencies. This will ensure that the schooling of the children has been taken care of, sometimes up to university.

If a parent saves 1,000 shillings to a child’s account monthly, it would mean they save 12,000 shillings per year. By the time the child is 10 years, the account would have at least 120,000 shillings. By the time the child is in college, both the child and the parent know they have the tuition for college covered and so do not need to worry.

The children bank accounts also train the children on the basics of investments and returns. The parents or guardians should show the child how to balance the bank statement for their account and so they can know their balances.

It is important to have children bank accounts for your children, to train the children how to save. Many banks have also realised the importance of these Children bank accounts as sources of funds for the banks.

How to Get the Best Bank Accounts in Kenya

A bank account in Kenya is a recording of all the financial transactions that happen between the customer and the banking institution. Banking in kenya has provided several types of bank accounts to cater to all.

One of the most important functions of banks is taking in deposits. This is according to the central bank of Kenya. People, on the other hand, also prefer to deposit their savings in the banks’, as they can earn interest and also avoid the danger of theft.

Types of bank accounts in kenya

Types of accounts on offer by banks vary but most banks work from the same script in their product offering

typesofbankaccountsinkenya

Cheque Bank accounts in kenya

A cheque account can also be referred to as a current account which is run in a transaction account. When money is deposited in this kind of account, the owner can withdraw it at any time. The choice of withdrawal amount and the number of times a customer wants to withdraw is left to the customer. Customers use cheques leafs to withdraw cash or make payments to others or making purchases. ATM cards can also be used. Very few banks pay interest on these types of accounts but customer pay banks what is commonly known as bank charges. These charges are levied by the bank to the customers for use of the banking facilities. A customer can demand his funds without notice to the financial institution.

Savings bank accounts in Kenya

These accounts are used by banks to collect money from customers, which the banks then lend to those who need loans. The customers earn interest on their savings accounts. The banks usually restrict the amount and number of times a savings account customer can withdraw. Few banks give cheque books for savings accounts, though majority of the banks give ATM cards to their customers

Money market bank accounts in kenya

A minimum amount is required to open this account. The minimum amount is the amount that must be in the account at any one time. Charges are levied on accounts that are below minimum, and these accounts are eventually closed if they are not funded. These types of accounts earn interest for the customers. The number and amounts withdrawn per month are restricted depending on the bank or financial institution.

Fixed deposit bank accounts in Kenya

This account has various names, for example time deposit or certificate of deposit. The amounts deposited in the account are fixed for a specified time. Different amounts and with corresponding different time periods earn different interest rates. The longer the amounts are held, and the more the amounts held then the customer earns higher returns or interest. After the customer has fixed a deposit, he can pay a penalty to the bank to have access to his funds.

Banks compete by the products they offer to the public. in kenya the tpyes of bank accounts on offer are many and the customer is spoilt for choice.