Saving money continues to be a challenge for Kenyans. That’s the showing of the Central Bank of Kenya’s banking sector of 2021.
According to data from CBK, only 2.65 percent of Kenya’s 66.3 million bank accounts held more than Sh100,000 last year. This is an increase from 1,685,654 in 2020 to 1,758,115.
The report labels 2021 as “A year of recovery.”
“2021 was a year of recovery coming after “the year like no other” that was 2020, dominated by the COVID-19 pandemic. In 2021, the roll out of vaccines and adoption of the global populace to the pandemic, saw the beginning of the recovery of the global economy.” the report reads.
Overall, Kenya’s banking sector remained stable and resilient, with a total capital adequacy ratio of 19.5 percent in December 2021, above the minimum capital adequacy ratio of 14.5 percent. Similarly, the sector’s liquidity stood above the minimum statutory level of 20 percent at an average liquidity ratio of 56.2 percent in the same period. Total net assets grew by 11.4 percent from Ksh 5.4 trillion in December 2020 to Ksh.6.0 trillion in December 2021.
“Customer deposits increased by 7.1 percent from Ksh.127.2 billion in 2020, to Ksh.136.3 billion in 2021. The growth in deposits was due to deposit mobilization through agency banking and mobile phone platforms.” reads the report.
Equity Bank had the largest share of commercial bank accounts with over Ksh 100,000 at 394,641. It is followed by KCB (297,610), Co-operative Bank (272,837) and NCBA (132,972) and Absa Kenya PLC at 115,089.
For Microfinance banks, Kenya Women Microfinance Bank 9,868. It is followed by Faulu Microfinace Bank Limited (8,503), SMEP Microfinance Bank Limited (2,026) and Rafiki Microfinace Bank Limited at 1,849.