Customer satisfaction is a key metric for determining how well a bank meets the needs and expectations of its customers. In Kenya, the banking sector has grown rapidly, with numerous players competing to offer the best services. In 2024, SagaBrand, Africa’s largest brand health tracker, conducted a comprehensive survey through its online panel, SagaPoll, to reveal which banks stood out in terms of customer satisfaction. This survey showcases which banks are leading the way and which have room for improvement.
In this blog post, we will explore the top-performing banks in Kenya for customer satisfaction, ranking them based on their Net Satisfaction scores. We will also take a look at loan interest rates, the cost of credit, and other factors that contribute to the overall customer experience in these financial institutions.
Understanding Customer Satisfaction in the Kenyan Banking Sector
Customer satisfaction in the banking industry goes beyond just providing financial services. It encompasses the bank’s ability to address customer needs, offer transparent services, and provide easy access to its products. In Kenya’s highly competitive banking landscape, factors like interest rates, customer service, digital banking platforms, and ease of access to credit heavily influence customer satisfaction.
SagaBrand tracks 25 Key Performance Indicators (KPIs), including customer satisfaction, which is derived from the balance between satisfied and dissatisfied customers. In 2024, the results from SagaPoll gave valuable insights into which banks are doing well in the eyes of their customers and which need to improve their service offerings.
Top Banks in Kenya Based on Customer Satisfaction
Here is a breakdown of the top banks in Kenya, ranked by customer satisfaction in 2024.
- Bank of Baroda
- KCB Bank
- I&M Bank
- Standard Chartered Bank
- Diamond Trust Bank (DTB)
- Stanbic Bank
- ABSA Bank
- Co-operative Bank (Co-op Bank)
- NCBA Bank
- Bank of Africa (BOA)
Each of these banks has performed well across various customer satisfaction metrics. Let’s explore in more detail what sets these top banks apart from the competition.
Bank of Baroda: A Small Player with Big Impact
Despite being a relatively smaller bank in Kenya’s personal banking sector, Bank of Baroda clinched the top spot with a Net Satisfaction score of 63%. Known primarily for its focus on corporate banking, Bank of Baroda has successfully extended its customer-centric services to personal banking clients, earning it high marks in satisfaction. Although its brand awareness is lower compared to larger players like KCB (57% versus KCB’s 92%), Bank of Baroda has developed a loyal customer base, thanks to its tailored and reliable services.
KCB Bank: A Consistent Performer
As Kenya’s largest bank by market share, KCB Bank closely follows Bank of Baroda with a Net Satisfaction score of 62%. KCB’s high rating can be attributed to its vast range of financial services, a strong digital banking platform, and an extensive network of branches. The bank’s mobile banking services, especially through KCB M-PESA, provide a seamless experience for many customers. KCB’s focus on convenience and accessibility has enabled it to maintain high levels of customer satisfaction over the years.
I&M Bank: Low Dissatisfaction, High Potential
I&M Bank ranks third in terms of customer satisfaction, with the lowest dissatisfaction rate of all the banks at just 4%. However, I&M Bank has a considerable percentage of neutral customers, indicating an opportunity to turn these neutral customers into loyal, satisfied clients. The bank’s focus on offering personalized services, particularly in corporate and wealth management, has helped solidify its position among satisfied customers.
Standard Chartered and DTB: Legacy and Reliability
Both Standard Chartered Bank and Diamond Trust Bank (DTB) are well-established names in Kenya’s banking sector. Standard Chartered continues to offer premium banking services, particularly in digital banking, while DTB has become known for its strong business banking services and reliable customer support. Both banks have maintained strong satisfaction scores, reflecting their consistency in providing high-quality services to customers.
Equity Bank: A Notable Challenge
Interestingly, despite being one of the most recognized banks in Kenya, Equity Bank has faced challenges in customer satisfaction in 2024. While brand awareness for Equity is the highest at 93%, the bank recorded the highest dissatisfaction rate at 15% among top-rated banks. Customers cited long wait times and inconsistent service across branches as key reasons for dissatisfaction. Equity Bank also ranks low in customer recommendation, which may indicate that while many use its services, fewer would recommend it to others.
The Cost of Credit: An Important Factor in Customer Satisfaction
While customer service and banking products are crucial, the cost of credit is another major factor in shaping customer satisfaction. The Central Bank of Kenya (CBK) regularly publishes data on interest rates offered by various banks, which reveals a wide range of borrowing costs across institutions.
The Cheapest Banks in Kenya (March 2024)
According to CBK data, the following banks offered the most affordable loan interest rates in 2024:
- First Community Bank – 9%
- Ecobank – 10.7%
- Housing Finance Company of Kenya (HFC) – 11%
- Access Bank – 11.2%
- Consolidated Bank – 11.6%
These banks attracted many customers seeking affordable credit, which positively influenced their customer satisfaction scores.
The Most Expensive Banks in Kenya (March 2024)
On the other hand, the following banks had the highest interest rates for loans:
- Credit Bank – 17.6%
- Middle East Bank – 16%
- Sidian Bank – 14.9%
- CIB – 14.7%
- Victoria Commercial Bank – 14.5%
The high cost of borrowing from these banks can contribute to higher dissatisfaction rates, particularly for customers who prioritize affordable credit solutions.
A Deeper Look at Interest Rates and Loan Costs
To provide a clearer understanding of the cost of borrowing in Kenya, we used the Kenya Bankers Association’s Cost of Credit calculator to evaluate the total loan charges across several banks. Below is a comparison of the cost of borrowing Kshs 1,000,000 for one year, based on the calculator’s results.
| Bank Name | APR (%) | Monthly Repayment (Kshs) | Total Cost of Credit (Kshs) | Total Repayment Amount (Kshs) |
|---|---|---|---|---|
| ABSA Bank | 23.21 | 91,918 | 127,017 | 1,127,017 |
| ABC Bank | 14.54 | 89,317 | 79,857 | 1,079,857 |
| Diamond Trust Bank | 17.65 | 89,317 | 95,807 | 1,095,807 |
| Ecobank | 22.71 | 89,613 | 121,407 | 1,121,407 |
| Equity Bank | 20.08 | 89,317 | 108,057 | 1,108,057 |
| KCB Bank | 19.91 | 89,317 | 107,207 | 1,107,207 |
These figures show that while interest rates may vary, additional charges such as legal and negotiation fees can significantly affect the total cost of borrowing. Customers seeking affordable loans need to carefully evaluate both the interest rates and overall loan costs before selecting a bank.
Conclusion: Finding the Right Bank
Choosing the best bank in Kenya depends on a combination of factors, including customer satisfaction, loan interest rates, and the overall cost of credit. Bank of Baroda and KCB Bank lead in customer satisfaction for 2024, but their loan rates might not always be the most competitive. On the other hand, banks like First Community Bank and Ecobank offer lower interest rates, making them attractive for customers seeking affordable credit options.
Ultimately, selecting the right bank depends on individual priorities—whether you value excellent customer service, affordable loan rates, or easy access to banking services. As the banking sector in Kenya continues to evolve, financial institutions must strive to meet the growing demands of their customers by improving service delivery, offering competitive rates, and embracing digital solutions.
Banks that can effectively balance customer satisfaction with affordable credit options will continue to thrive in this competitive landscape.
