Kenyan banks are competing more directly on pricing over the last few years as more transactions shift to digital channels and regulatory scrutiny increases around fee transparency. A comparison across major lenders shows that the lowest-cost option depends on how accounts are used, including the frequency of transfers, the need for basic current account access, and borrowing requirements.
Differences are most visible in interbank transfer pricing, monthly account charges and lending rates.
SBM Bank Kenya Reduces Interbank Transfer Fees
SBM Bank Kenya offers the lowest-cost option for domestic interbank transfers after introducing its “Tuma na Mbao” pricing in partnership with PesaLink in late 2025.
The bank applies a flat fee of KES 20 for transfers between KES 1,001 and KES 999,999, while transactions below KES 1,000 are free. Most banks in Kenya use tiered pricing structures, with fees rising as transfer values increase and reaching as high as KES 250 for larger transactions.
The flat pricing structure is relevant for small and medium-sized businesses that make frequent payments to suppliers and employees. PesaLink transfers via the SBM Mfukoni platform are available at all times, including weekends and public holidays. According to PesaLink data, average transaction values exceed KES 135,000, indicating strong usage for business-to-business payments.
For individual customers, the zero fee on lower-value transfers reduces the cost of routine remittances. In December 2025, SBM placed first for simplicity and affordability at the inaugural PesaLink Awards.
Standard Chartered Eliminates Monthly Maintenance Fees
For customers seeking to avoid fixed account costs, Standard Chartered’s Hifadhi Current Account operates without a monthly maintenance fee.
The account uses a pay-as-you-transact structure, with charges applied only when withdrawals or transfers are made. It is positioned for customers who rely on digital banking and have variable or low transaction volumes.
The account is offered in Kenyan shillings, US dollars, British pounds and euros. Features include mobile and online banking access, free electronic statements and an optional Visa debit card for ATM and point-of-sale use. Compared with bundled accounts that apply a flat monthly charge regardless of activity, the cost structure favours customers with limited account usage.
Premier Bank Posts the Lowest Lending Rates
On credit pricing, First Community Bank, now operating as Premier Bank following its acquisition, has reported some of the lowest average lending rates in Central Bank of Kenya data.
Figures from late 2025 show average loan rates near 9%, compared with an industry average of about 14.9%. The bank has historically applied relatively uniform pricing rather than the risk-based models used by larger lenders.
That advantage may narrow following regulatory changes. From December 2025, Kenyan banks were required to price loans using a framework linked to the Kenya Shilling Overnight Interbank Average, or KESONIA, a move expected to reduce disparities in lending rates across the sector.
Equity Bank Emphasises Low-Cost, High-Volume Accounts
Equity Bank’s Ordinary Account remains among the lowest-cost options for basic banking. The account has no monthly maintenance fee, no ledger fees and no minimum operating balance.
Transfers between Equity accounts, including through the Equitel platform, are free. Customers can also deposit cash and cheques without charge. An annual debit card fee of about KES 240 applies, and balances above KES 10,000 earn interest.
The account structure suits customers who make frequent low-value transactions and rely heavily on mobile banking, a segment that forms a large share of Equity’s customer base.
Stanbic Focuses on Lending and Cross-Border Services
Stanbic Bank Kenya does not compete primarily on transaction pricing. Instead, it has focused on digital lending and cross-border services.
Average lending rates declined through 2025, reaching about 12.8% by mid-year following reductions to the bank’s base lending rate. Stanbic also offers a fixed-rate mortgage priced at 8.99% through a partnership with the Kenya Mortgage Refinance Company, available until February 2026.
For Kenyans living abroad, the bank’s Diaspora Account can be opened fully online and provides access to digital banking services and mortgage products.
Stanbic was named Kenya’s Best Transaction Bank for 2025 by Euromoney, citing its digital payments and bulk transaction infrastructure used by listed companies.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.