CBK: WAITING TIME FOR LOANS TOO LONG

It takes Kenyans an average of six-and-a-half weeks to secure a loan in the leading financial institutions, according to a banking survey.

However, the same customers suffer because they have to wait for more than the stipulated period. The bank charges and lending rates survey commissioned by the Central Bank of Kenya (CBK) said that only 21 per cent of the bankable population found it ‘very easy’ to secure a loan.

The survey done in March in the three major towns of Nairobi, Mombasa and Kisumu, added that 48 per cent, on the other hand, found the process ‘fairly easy’.

“A minority (21 per cent) found the loan service received from the banking staff as very good,” said the survey launched at the CBK headquarters yesterday.

Conducted by Research International and public relations company Tell-Em, the study, however, said that 69 per cent of the customers seeking loans found the services offered by banks to be fairly good. In the popular savings account category, the study cites Chase Bank as the most expensive bank to open and operate an account with, as it charges monthly fees of as high as Sh1,750.

Monthly charges

It is closely followed by Imperial Bank, where customers pay an average monthly charge of Sh899, while Barclays comes third with Sh899 for a minimum balance of Sh30,000. Banks that do not charge monthly fees on savings accounts, according to the study, are Diamond Trust, Equatorial Commercial Bank, Standard Chartered Bank and East African Building Society.

The study whose sample survey was 1,100 customers, says it is very easy to access a loan at the Equatorial Bank, Equity Bank and Cooperative Bank, but fairly difficult at the Bank of Baroda due to the processes involved.

Speaking during the launch of the study, CBK Governor Prof Njuguna Ndung’u said that 38 per cent of Kenya’s population were totally excluded from financial services and products. He urged banks to come up with new products for poor Kenyans living in rural areas.


SOURCE: DAILY NATION