Data from the Central Bank of Kenya has revealed that the number of bank accounts which have managed to accumulate a noteworthy sum of more than Sh100,000 rose in 2022 compared to 2021.
Number of Kenyan bank accounts with over Sh100K - CBK report
The rising number of Kenyans with Sh100,000 in their bank accounts underscores the growing culture of saving in the country. Customers have stashed Sh5 trillion in different financial institutions in Kenya
Central Bank of Kenya (CBK) Governor Patrick Njoroge displays a roll of shredded old generation Sh1,000 banknotes at a presss conference in Nairobi on October 2, 2019. (Photo by SIMON MAINA/AFP via Getty Images)
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According to the Bank Supervision Annual Report 2022, banks recorded 1.871 million accounts with over Sh100,000, a 4.9% jump from 1.783 million in 2021.
This increase is seen as a sign of improving fortunes for individuals and firms in an election year characterized by increased spending.
CBK Governor Patrick Njoroge speaks during a news conference at the central bank headquarters in Nairobi. Photographer: Luis Tato/Bloomberg via Getty Images
CBK Governor Patrick Njoroge speaks during a news conference at the central bank headquarters in Nairobi.
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However, the data also reveals that high-quality accounts have been moving from smaller banks to larger ones as depositors seek safety following the collapse of several financial institutions in recent years.
The reports shows that the number of accounts with more than Sh100,000 grew by 5.1% percent in banks, but dropped by 3.8% in microfinance banks.
According to the data, 24,257 accounts with more than Sh100,000 were in microfinance banks while large commercial banks took the lions share at 1.847 million.
Savings culture among Kenyans
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The rising number of Kenyans with Sh100,000 in their bank accounts underscores the growing culture of saving in the country.
As financial literacy initiatives and digital banking solutions gain traction, more individuals are becoming aware of the importance of saving money for both short-term and long-term goals.
Customer deposits held by banks increased by 12.3% from Sh4.5 trillion in December 2021, to Sh5 trillion in December 2022.
CBK Governor Patrick Njoroge
CBK Governor Patrick Njoroge
Pulse Live Kenya
The growth in deposits was due to deposit mobilization through agency banking and mobile phone platforms.
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The report also shows that the total net assets in the banking industry grew by 10% from Sh6 trillion in December 2021 to Sh6.6 trillion in December 2022, with the growth being supported by the increase in loans and advances.
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