3.6 million bank accounts closed in 2021: CBK

A total of 3.6 million bank accounts were closed in 2021 according to new data from the Central Bank of Kenya (CBK).

The data from the 2021 Bank Supervision Annual Report shows the number of deposit accounts under 39 of Kenya’s commercial banks fell to 66.3 million from 69.9 million accounts a year earlier.

The 19.1 per cent decline in the number of accounts has been linked to the closure of dormant accounts along with the closure of accounts by customers during the year.

While the report does not give an attribution to the closure of accounts by customers, the active shutdown of accounts by Kenyans likely points to the strain caused by the COVID-19 pandemic affecting customers cash-flows and ability to maintain savings.

Overall deposit accounts held in both banks and 14 microfinance banks (MFBs) fell by 4.8 per cent or by 3.5 million to 69 million accounts from 72.5 million accounts in 2020.

Nevertheless, deposit accounts in MFBs rose by 2.7 per cent to 2.665 million accounts from 2.594 million accounts in 2020.

NCBA Bank holds the highest number of bank deposit accounts at 32.5 million ahead of Equity and KCB at 12 million and 9.8 million accounts respectively.

On the MFB’s front, the Kenya Women Microfinance Bank Limited holds the highest number of deposit accounts at 1.044 million.

This is the first recorded slump in the number of deposit accounts held by commercial banks in a CBK data set going back to 2006.