In banking, a maintenance fee is a monthly charge deducted from your account simply to keep it open and active. It works like a subscription fee for storing and managing your money. Banks use these charges to cover account administration, customer support, digital banking systems, and mobile app maintenance.
Some accounts in Kenya no longer charge monthly maintenance fees. Instead, they operate on a “pay-as-you-go” model where customers only pay small charges when they withdraw cash, transfer money, or use specific banking services. For many Kenyans, especially mobile money users and salaried workers, avoiding monthly maintenance fees can save thousands of shillings every year.
Bank accounts in Kenya with zero monthly maintenance fees include:
1. I&M Bank PayGo Account
The I&M PayGo Account has become one of the most popular transaction accounts in Kenya for customers who frequently move money between banks and mobile wallets. The account requires an opening balance of KES 1,000. Once activated, customers can maintain a zero balance without penalties. One of the biggest advantages of the I&M PayGo Account is that it does not charge monthly maintenance fees. However, customers should note that there is a KES 30 ledger fee for non-channel debits. Transactions carried out through the mobile app, USSD, or ATM channels avoid this fee entirely.
The account stands out because transfers from the bank account to M-Pesa or Airtel Money are completely free. This can save regular mobile money users substantial transaction costs over time. Customers who need a debit card pay a one-time Mastercard Platinum Debit Card fee of KES 500 for issuance, renewal, or replacement. ATM withdrawals at I&M Bank ATMs cost between KES 30 and KES 33, while using another bank’s ATM costs around KES 50 to KES 55. The bank strongly encourages digital banking usage. Over-the-counter withdrawals at a branch attract a steep KES 250 charge per transaction.
2. Absa Bank Kenya Absa One Account
The Absa One Account is designed as a fully digital everyday banking account operating on a pay-as-you-go structure. Customers can open the account with KES 0 and are not required to maintain a minimum balance. The account also carries zero monthly maintenance fees and no traditional ledger fees.
Unlike the I&M PayGo Account, transfers from Absa to M-Pesa or Airtel Money are charged using a tiered pricing structure. Sending between KES 1,001 and KES 5,000 costs roughly KES 60, excluding the standard government excise duty on money transfers.
The annual debit card fee ranges between KES 200 and KES 220, while ATM withdrawals at Absa ATMs cost around KES 30. One advantage of the account is access to a free digital savings account. Customers who channel their income through the account may also qualify for unsecured personal loans of up to KES 4 million.
3. Equity Bank Ordinary Account
The Equity Ordinary Account remains one of the most accessible bank accounts in Kenya due to Equity Bank’s extensive branch network and large number of Equity Agents across the country. The account can be opened with KES 0, and customers are not required to maintain any minimum operating balance. There are no monthly maintenance fees or ledger charges attached to the account, making it attractive for customers seeking affordable everyday banking.
Customers pay a one-time fee of around KES 600 for an instant Mastercard or Visa debit card. ATM withdrawals at Equity ATMs cost approximately KES 30. However, some transactional charges still apply. Over-the-counter withdrawals inside banking halls cost KES 100, while SMS transaction alerts are charged at KES 2 per notification. Transfers from the account to M-Pesa follow the standard tiered banking tariffs regulated in Kenya.
4. Standard Chartered Hifadhi Current Account
The Standard Chartered Hifadhi Current Account offers customers access to an international banking platform without monthly maintenance charges. Opening the account requires an initial deposit of KES 2,000, but customers can later operate the account with a zero balance without penalties. The account does not charge monthly ledger fees or maintenance costs. Customers receive a Visa Debit Card, and all Point-of-Sale card transactions and online purchases are free. ATM withdrawals at Standard Chartered ATMs cost around KES 35.
One feature that separates this account from many competitors is free over-the-counter cash handling. Unlike some banks that penalize branch withdrawals, Standard Chartered allows customers to transact with tellers without standard OTC withdrawal fees. Bank-to-M-Pesa transfers are charged using normal banking tariffs, while electronic statements delivered via email are free.
5. Co-operative Bank Salary Account
The Co-operative Bank Salary Account is designed for salaried employees whose income is processed through the bank. The account requires no opening balance and no minimum operating balance, provided the employer has a salary processing arrangement with the bank. Customers are not charged monthly maintenance fees. Instead, the account uses transaction-based charges whenever services are used.
A Co-op Cash debit card costs around KES 500 to issue. ATM withdrawals at Co-operative Bank ATMs range from KES 30 to KES 35. Customers who withdraw money over the counter inside branches pay KES 100 per transaction. The bank also offers access to Co-op Kwa Jirani agents across Kenya, where withdrawal charges are often cheaper than banking hall transactions.
How to Avoid Extra Banking Charges in Kenya
Even if your bank account has no monthly maintenance fee, transaction costs can still add up over time. Customers can reduce unnecessary banking expenses by:
- Using mobile apps instead of visiting branches
- Avoiding over-the-counter cash withdrawals
- Using the bank’s own ATMs whenever possible
- Opting for e-statements instead of printed statements
- Reducing frequent small transfers to mobile money wallets
Frequently Asked Questions (FAQs)
- Which bank account in Kenya has no monthly charges?
Several banks in Kenya offer accounts with zero monthly maintenance fees, including I&M Bank, Absa Bank Kenya, Equity Bank, Standard Chartered, and Co-operative Bank.
- Which bank has free transfers to M-Pesa?
The I&M PayGo Account allows free transfers from the bank account to M-Pesa and Airtel Money.
- Can I open a Kenyan bank account with zero balance?
Yes. Accounts such as the Absa One Account, Equity Ordinary Account, and Co-op Salary Account can be opened and operated with KES 0 minimum balance requirements.
- What is the difference between maintenance fees and transaction fees?
Maintenance fees are fixed monthly charges deducted from your account regardless of usage. Transaction fees are only charged when you withdraw money, transfer funds, or use certain banking services.
- Which account is best for salaried employees?
The Co-operative Bank Salary Account is specifically designed for salaried workers and does not charge monthly maintenance fees.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.