More Kenyans breaking up with their banks, says report
By Vanessa Sandra, February 24, 2025Despite all the buzz about digital banking, Kenyans are still breaking up with their banks due to poor customer service, high fees, and clumsy digital platforms.
The 2024 Banking Customer Satisfaction Survey by Kenya Bankers Association (KBA) reveals that no amount of flashy apps or sleek online portals can keep customers loyal if the basics are not right. According to the numbers, 47.3 per cent of customers left their banks because of poor service, while 46 per cent were fed up with high fees.
And just when banks thought digital was the answer to everything, 32.8 per cent cited inconvenient digital banking platforms as the reason they jumped ship.
Long wait times (30.1 per cent) and security concerns (29 per cent) rounded out the list of top frustrations by consumers.
While Kenyan banks are making strides in digital transformation, the user experience leaves a lot to be desired. It’s like buying a fancy new car that breaks down every other week. Sure, it looks great, but if it doesn’t get you where you need to go, what’s the point?
This disconnect is particularly striking because digital banking is popular. Mobile and internet banking each scored a perfect 6/6 in customer satisfaction, and 56 per cent of customers love the convenience of self-service platforms.
While people want to bank on the go, at any hour and without having to queue in branches, not all digital experiences are created equal. Take Jane Kemboi, a small business owner who switched banks twice in one year. “I thought digital banking meant convenience,” she says.
“But I spent more time on hold with customer care than I did actually doing my transactions.” Her first bank’s app was buggy, freezing right when she needed to make urgent payments. The second bank’s fees were so high that she started wondering if they were charging her for just opening the app.
The report found that 10.63 per cent of customers need special accommodations like braille or screen readers, but most digital platforms still lack these accessibility features. This leaves people with disabilities struggling to access basic services, making digital banking more frustrating than freeing.
Financial services
It’s not just the apps and platforms causing trouble. Banking services are still largely urban-centric, leaving rural communities underserved. The report noted that financial services are heavily concentrated in Nairobi and other major cities, creating financial exclusion in less developed areas.
This is particularly tough for micro, small and medium-enterprises (MSMEs) in remote regions, who can’t easily access affordable banking solutions.
Competition Authority of Kenya (CAK) Director General, David Kibet Kemei, is not impressed. He called for greater transparency in fees, better consumer protection, and stronger digital security.
“With only 18.3 per cent of Kenyans financially healthy, banks must develop tools to track financial wellness and educate customers on budgeting and responsible borrowing,” he said.
The report revealed an improvement in complaint resolution, with 75.44 per cent of issues being resolved within two days, up from 66.4 per cent in 2023. But not everything is rosy—16.25 per cent of customers still reported inconsistent resolutions, suggesting that customer support teams are overwhelmed or undertrained.
KBA chief executive Raimond Molenje acknowledged the industry’s progress but warned that inconsistent service delivery and digital inefficiencies could erode trust. “Kenya’s banking sector is a pillar of innovation, but we must address operational gaps to sustain trust,” he said.
There is, however, a surge in customer loyalty. The industry’s Net Promoter Score (NPS) jumped from 37.7 per cent in 2023 to 44 per cent in 2024, with 58.1 per cent of customers actively recommending their banks.
But here’s the kicker—49.5 per cent of customers still keep accounts at two or more banks, hedging their bets in case one provider lets them down.