How can I start a bank agency in Kenya?


A bank agent is an entity that has been contracted by a bank and approved by Central Bank of Kenya (CBK) to provide services on behalf of them at a commission.

Thanks to agency banking, customers have the ability to deposit and withdraw money, pay school fees and utilities such as water, make NHIF payments check their balances and get their mini statements..

Banks have embraced this type of banking;

  • As it seek to reduce their running costs by not employing more tellers to serve customers as most deposits and withdrawals are being done by agents.
  • As it has helped curb long queues, as more and more customers prefer to do their banking in agencies.
  • As it is convenient to customers, as agencies are nearer to them and they can withdraw and deposit at any time.

Below is the process of applying and starting an agency bank;

  • Apply at the bank you want to be an agent for.
  • Perform self-appraisal to check if you meet the set requirements.
  • Appraisal of your application is done.
  • Central Bank of Kenya approves your application.
  • Set up the agency.

How to become a co-operative bank agent

You need to meet the following requirements;

  • Provide a certificate of registration of your business.
  • Open a co-operative account if you don’t have one.
  • Provide a copy of your National ID.
  • Provide your pin certificate.
  • Two passport size photos.
  • Have a current business permit that shows you have been in business for at least 3 months.
  • Provide a certificate of good conduct.
  • Fill a CBK form 3 and 4 and have it witnessed by commission of oaths.
  • Provide a 6 month statement if you don’t have an account with co-operative.
  • Pay a license application fee of Ksh 1000.
  • Have the ability to raise the amount of float determined by the bank when they are appraising your application.
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Co-operative bank agent commission on cash withdrawals

Withdrawal Amount(Ksh)Charges (Ksh)Commission
50-2,0005020
2,001-5,0005020
5,001-10,0007030
10,001-20,0008035
20,0001-30,00010045
30,001-40,00012055
40,0001-50,00014065
50,001-100,000250120

Co-operative bank agent commission on cash deposits

Deposit Amount(Ksh)Charges (Ksh) Commission
100-14,999FREE10
15,000-19,999FREE15
20,000-29,999FREE20
30,000 and aboveFREE30
Utilities5025
Balance Inquiry105
Mini statement2010

How to become a KCB bank agent

You need to meet the following guidelines.

  • Have an account with KCB .
  • Provide your National ID.
  • Provide your KRA pin certificate.
  • Two colored passport size photos.
  • Have a certificate of good conduct.
  • Attach a copy of your business licenses.
  • Evidence to show that your business has been operational for at least one year.
  • Fill an application form at a KCB branch.

KCB bank agent commission on cash withdrawals

Withdrawal Amount(Ksh)Charges (Ksh) Commission(Ksh)
100-2,0002010
2,001-2,5003015
2,501-5,0003216
5,001-10,0005326.50
10,001-20,0007537.50
20,001-35,00010552.50
35,001-50,00010552.50
50,001-75,00018592.50
75,001-100,00018592.50

KCB bank agent commission on cash deposits

Deposit Amount(Ksh)Charges (Ksh) Commission(Ksh)
100-10,000FREE10
10,001-20,000FREE15
20,001-50,000FREE20
50,001-75,000FREE25
75,000-100,000FREE30

How to become an Equity bank agent

You need to meet the following requirements ;

  • Have a valid business permit.
  • Have an existing business that has been running for 1 year in the same neighborhood.
  • The business must be in a location that is easily accessible, visible and secure.
  • The business must be in a busy place with high traffic.
  • Provide a 6 month statement.
  • Provide a brief description of the performance of the business for at least 12 months.
  • Be of high integrity.
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Equity bank agent commission on cash deposits

Deposit Amount(Ksh)Charges (Ksh) Commission(Ksh)
100-5,000FREE10
5,001-10,000FREE15
10,001-20,000FREE20
20,001 and aboveFREE30

Equity bank agent commission on cash withdrawals

Withdrawal Amount(Ksh) Commission(Ksh)
100-2,50015
2,501-5,00025
5,001-10,00035
10,001-20,00060
20,001-35,00070
35,001-50,00090
50,001 and above120

How to become a National bank agent

  • The business should be operational for at least 18 months.
  • Business owners should have a good CRB record.
  • For a company, provide a copy of the certificate of incorporation and memorandum of association.
  • For a sole proprietorship, provide a copy of the certificate of registration.
  • Provide a copy of your National ID.
  • Pin certificate from KRA.
  • Provide a certificate of good conduct of the business owners.
  • Attach a statement of 18 months.
  • Have a valid business license.
  • Attach two passport size photos.
  • Attach a photo of the business premises.
  • Pay a  POS Lease fees of Ksh 6000.
  • Have the ability to raise a minimum float requirement of Ksh 20,000  to a maximum of Ksh 100,000.

National bank agent commission on cash withdrawals

Withdrawal Amount(Ksh)Charges (Ksh) Commission (Ksh)
100-2,0002010
2,001-5,0003015
5,001-10,0005025
10,001-20,00010050
20,001-35,00014070
35,001-50,00018090
50,001 and above250125

National bank agent commission on cash deposits

Deposit Amount(Ksh)Charges (Ksh) Commission(Ksh)
100-20,000FREE20
20,001-50,000FREE30
50,001-100,000FREE40

How to become a family bank agent

  • Provide certificate of good conduct (individuals/partners).
  • Two passport size photographs.
  • Attach a copy of pin certificate.
  • Attach CV of business owner(s).
  • Evidence of commercial activity for a minimum of 18 months .You can provide the previous 2 years business permits.
  • Valid business certificate.
  • Current business permit.
  • A certified 6 months statement of your business account.
  • A clearance certificate from the Credit Reference Bureau.
  • Pay an application fee of Ksh 1,000/= that is renewable annually.
  • Pay an agency application fee of Kshs.1000/=. Attach  receipt for evidence.
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Is agent banking profitable?

For agency banking to be profitable, ensure your business is in a visible place with high traffic. To maximize profits, combine it with an M-pesa agency as most people transfer funds between their bank accounts and M-pesa account.

Conclusion

Agency banking is highly lucrative if only you are patient and persistent.Once people get to know and interact with your business, you will make a considerable amount of income.

So try it today!

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