A bank account is a financial account maintained by a bank or other financial institution in which the financial transactions between the bank and a customer are recorded. Each financial institution sets the terms and conditions for each type of account it offers, which are classified in commonly understood types, such as deposit accounts, credit card accounts, current accounts, loan accounts or many other types of account. A customer may have more than one account. Once an account is opened, funds entrusted by the customer to the financial institution on deposit are recorded in the account designated by the customer. Funds can be withdrawn from loan loaders. let us learn steps on How to Open a New Bank Account in Kenya
The financial transactions which have occurred on a bank account within a given period of time are reported to the customer on a bank statement, and the balance of the accounts of a customer at any point in time is their financial position with the institution. How to Open a New Bank Account in Kenya
Procedure on How to Open a New Bank Account in Kenya
To open an account with a New Bank Account you will need: Before you visit the Bank you need to carry out an extensive survey to find out which bank has the best policies,that will suit your financial needs. After you have decided the bank Go there with:
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- A current billing receipt that is not more than three months old {like ,Water bill or Electricity bill with your address boldly written on it}.
- I.D Card{This could be your national I.D card, driver’s License or even a voter’s registration I.D card to confirm your citizenship}
- A minimum of Ksh.2000.
- Step1
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- Walk into any Bank and tell them you want to open an account and then you will be given a form to fill.
- Fill the form accurately with no mistakes, give your current address as stated on the bill as any mistake in the address may hinder them from opening your account.
- If you are confused about any question just ask and they will assist you even if you cannot write properly they will do it for you as long as your details is correct.
- Step2
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- Just submit the form with the photocopy of your national identification card. Wait for a week or two for them to confirm your address and your account is opened.
Note
If you know that your residential address is not easily accessible or you have a lot of enemies in your area use your working address and their billing receipt because they wont open your account untill your address has been confirmed and verified. The essence of this, is that the bank can be able to reach you if anything goes wrong and also confirm some certain things too. If you are a foreigner and would like to get an account with simple just go to their website that’s all.
- Diaspora Bank Account.
Persons residing abroad can open the account in person or by post in his/her name.
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- Applicants who could not be physically present to open the account in the domestic banks can use the Kenyan Embassies, Correspondent Banks or nearby remittance service providers to prove their identities.
- Opening of a foreign currency account by Power of Attorney holders is not allowed. However, Power of Attorney holders are allowed to withdraw from these accounts provided that the Power of Attorney explicitly empowers them to operate these accounts.
- An individual may open current account in only one of the domestic banks whereas he/she may open fixed deposit accounts in more than one bank.
This is a deposit account targeted for Kenyans in Diaspora to open and use foreign currency account at home country.
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- Individuals and companies can open this account.
- This account can serve as collateral to get credit in local currency from domestic banks in line with the opening banks credit policy.
- Deposit is made in one or more of the following currencies:
- US Dolla
- Pound Sterling
- Euro
- Deposits that are made in other convertible currencies such as Canadian Dollar, Saudi Riyal, Japanese Yen, Australian Dollar and UAE Dirham shall be converted to any of the above stated three currencies at spot exchange rate based on the preference of the account opener.
- Interest rate on such accounts shall be double of the minimum saving deposit rate set by the Central Bank of Kenya, currently it is 10%.
- Money can neither be transferred from this account abroad nor from the local currency to any foreign currency.
Required Documents
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- Application forms properly filled and signed by the applicant.
- For Kenyan or foreign nationals of Kenyan origin individuals, valid passport and/or identification card.
- For businesses, Certificates of ownership entitlement for the organization and/or Articles and Memorandum of Association.
- A Duly signed Account Opening form.
- Two specimen signature card.
- Two passport Photos.
- Identification card i.e a national ID, Voters Card or passport.
- Utility bill for resident.
Office Locations & Contacts
- Central Bank of Kenya.
Haile Selassie Avenue,
P.O Box 60000-00200,
Nairobi, Kenya
Tel/fax: +254-20-2860000
Email:comms@centralbank.go.ke
Eligibility
You must be 18 years and above.
Fees
Initial deposit of US Dollar 50 or Its equivalent in any of the above stated currencies.
Validity
Valid for a longer period of time as long as you keep your minimum deposit on the account.
Processing Time
The Process takes 30 working days
Instructions
Must visit the bank in person.
Required Information
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- Full name of applicant
- Sex, Age and marital status
- Nationality
- Education background
- Utility bill for resident.
- Mandatory initial deposit of Ni.1000 Birr,
- Risk assessment form
- Resident permit in case of foreigner.
Need for the Document
All Kenyan nationals and foreign nationals of Kenyan origins living and working abroad outside Kenya for more than one year are free to open up new Accounts in the bank i.e. a non-resident and holder of a valid Kenyan passport for Kenyan Nationals and identification card for Non-Resident Foreign Nationals of Kenyan Origin (attesting that s/he is a foreign national of Kenyan origin)
Business entities owned by by non- resident Kenyans and located outside the Kenya territory for more than one year. Opening a new Bank account in Kenya is easy as long as you are a Kenyan and you have a valid Kenyan document.If you are a foreigner you will need to poses a Resident permit.
Many people at times go into banks to open accounts but majority always have this problem of address verification by the bank. Not that they don’t provide good details but its just that.
