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Majority of Kenyans have at least two bank accounts for diversity
Survey shows that many Kenyans have multiple bank accounts driven by the need to diversify banking risk, to separate personal and business affairs, and to access unique services from different lenders.
More than six in ten (63.28 percent) Kenyans have at least two bank accounts, a new survey has revealed, signalling the growing trend of multi-banking as customers seek to diversify their financial services.
The newly released Kenya Bankers Association (KBA) Customer Satisfaction Survey Report shows that only 36.72 percent of respondents have a single banking partner.
The survey captured the views of 37,471 Kenyans in 2024, up from 33,608 the previous year, with the majority (62.01 percent) between the ages of 26 and 45.
Multiple account holders increased from 62.58 percent in 2023 to 63.28 percent of the sample.
“Kenya’s banking sector is witnessing a growing trend toward multi-banking, as customers balance the need for diverse financial services with enduring loyalty to trusted institutions,” KBA said in the report.
The number of Kenyans with one bank account fell slightly from 37.42 percent to 36.72 percent.
Those with two to three accounts stood at 49.5 percent in 2024, down from 53.2 percent a year earlier.
“There is a sustained preference for banking account ownership diversification, with 49.5 percent of respondents holding accounts with two to three banks, up from 53.2 percent in 2023 and 48.2 percent in 2022,” KBA said in the report.
According to the report, the change can be attributed to those with two or three accounts adding more accounts to the four to five range.
Those with six or more bank accounts accounted for 1.96 percent of respondents, up from 1.221 percent who said they had several other accounts in 2023.
People with multiple accounts keep them for better budgeting, and tracking savings and investments.
For example, one bank account could be used to pay bills and for household expenses, while the other could be a joint account for savings, among other things.
Diversifying funds across accounts provides both security and flexibility.
The use of multiple accounts is driven by the need to diversify banking risk, to separate personal and business affairs, and to access unique services from different lenders, among other reasons. Having more accounts can also make it easier to obtain more credit.
The banking industry has benefited from the use of multiple accounts, allowing several institutions to generate income from a single customer.
Others have separate accounts in case of bank failure and want to try different financial institutions to find out what suits their needs.
However, the additional accounts mean more costs, as transaction fees and monthly and annual charges increase, depending on the type of account and the tariffs set by the institution.
