CBK alarming report - 0.7% of Bank accounts in Kenya have more than 1Million

CBK recently gave an alarming report on the state of bank accounts in Kenya. Nearly all bank accounts or to be specific, only 0.7% of bank accounts that exist in Kenya have Kes 1Million or more, and this includes bank accounts for bigger corporates, SME business accounts, government accounts, personal accounts, foreigners living in Kenya e.t.c

Mpesa can only hold Kes 140,000, ($1,400) so where do Kenyans keep their money? Do they keep cash it in their homes, do they have just enough to survive or are we just a poor country?

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Some still keep them in banks, the trick is to have several bank accounts i.e have like 5 bank accounts each having a threshold less than 1m e.g 850k in each of those accounts makes one have like 4.2m

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I don’t think this is true. The CBK Governor had to lie so as not to create any excitement among hackers. Only ex-bank employees in IT departments are the ones involved in bank frauds juu wanajua accounts za watu na deposits. Watu wa nnje kabisa ni rare. So, giving a discouraging figure helps to deter potential hackers from targeting banks.

CBK governor is not a village elder to lie recklessly
His office is a very serious office. Spreading lies is not something a holder of this office can even afford to do - a lie from this office can destroy this economy - and he can be jailed if he lies

He was not addressing IT specialists, he was giving information to law makers that are making regulations about withdrawals in Kenya. Lying to parliament is a crime and can attract a penalty or a jail term.

Imagine what that lie would mean to corporations seeking to invest in Kenya. A lie of this nature can deter hundreds of Billions from being invested in Kenya.

Can you imagine if he lies, what it will mean to international community, World Bank, IMF, EU.

Do you think Banks would be quiet if CBK governor speak lies about their industry?

CBK governor is a person of high standing, and I don’t think he would want to lose his credibility because of some hacker. He doesn’t run commercial banks, he’s not a CEO of some bank who can’t sleep at night because systems are not secure and client’s money could be stolen, he is a regulator - he sets laws and supervises banks. Can you imagine a regulator lying to 40Million Kenyans telling them they dont have money in the bank and how poor they are. Is that even possible?

It seems you’re in disbelief of the reality of our country.
It’s true, we are a poor country. Only 0.7% of the accounts hold 1Million and above.

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I agree he’s a person of high regard… But never trust anyone… Especially when under pressure

I have three friends who are senior bank employees with different Tier one banks. They do express the same sentiments that CBK governor did not disclose the truth as a way of diverting attention of what would have caused itchy fingers among bank fraudsters. Key word here is fraudsters or hackers not IT specialists. Kenya is not a poor country. If you’re poor you’re individually poor and not Kenya.

I wouldn’t believe a bank employee that they have sufficient information about the whole of Kenya’s banking industry.

I would choose to believe a report from the Head of Banking Sector especially when he gives this report to lawmakers in parliament that would form a basis of making a law.

I do not have any doubt in CBK governor report. He is not telling lies to lawmakers, to investors, to business community, to international community, just because he wants to mislead some hacker sitting in his bed in underwear, trying to breach banking systems.

Our banking security systems are not that poor, to an extent that our solution to deter cybercriminals, is to have our CBK governor head over to parliament, and in front of everyone tell a big, fat lie by painting a sorry picture of our banking sector in order to discourage hackers. No, no, no, Kenya doesnt need to do this, our banks (Standard Chartered, KCB, Barclays, Equity e.t.c) have world class security systems.

This information was not meant for hackers, it was meant for the public and lawmakers who represent them, to make them understand why there has to be a law in Kenya requiring documentary evidence any time a Kenyan would want to withdraw or transfer over 1Million. A law in Kenya cannot be formed on a foundation of lies.

Here is separate information about Kenya’s economy that is consistent with CBK governor report.

What majority of Kenyan households earn in a month

Nearly half of Kenya households earn less than Sh10,000 per month…One percent (1%) earning between Sh75,000 and Sh100,000 per month - Click Standard Article link below

50% of Kenyan Households Earn Below Sh10,000 Per Month – Ipsos

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Here is the Banking Sector Report from CBK - 2017 - Click to download PDF
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Only 2.89% of formal sector employees in Kenya earn more than Sh100,000 per month

74pc of salaried Kenyans earn less than Sh50,000

If you’re basing your hard stance on salaried employees, I’m sorry man :rofl::rofl::rofl:

I read those articles before and it’s a pity. Money is outside here. Not in the employment sector.

If you wish…inbox me I invite you on some group in Facebook.

There’s something people do from time to time called a Dk** measuring contest, where people publicly display their earnings over either a monthly or biweekly period. FYI the group has over 120,000 members.

Utaamini what I’m telling you.

First Article from Ipsos Synovate survey is on Total Household income - what Kenyans make as a whole - salaried people plus all people under self employment and owning businesses. - Nusu ya Kenya mzima wamesota mbaya, they make less than 10,000 bob per month.

The last two articles are now for salaried people both formal and informal employment.

Below is another 2015 article
In 2015, about 1.1Million bank accounts in Kenya had Kes 100,000 in cash balance and above.

These 1.1Million bank accunts form 2.9% of all 30,600,000 bank accounts. If you do the math using recent stats of 0.7%, then only 214,000 bank accounts have a cash balance of 1Million+. The other 29.5Million bank accounts have balances lower than 100K.

In Simple terms
Kes 1,000,000 and above - 214,000 Bank accounts (0.7%)
Kes 100,000 - 1,000,000 - 886,000 Bank accounts (2.2%)
Kes 0 - 100,000 - 29,500,000 Bank accounts (97.1%)

High value bank accounts triple to 1.1m in 10 years

Have a good day bro

That’s a small group of people who formed an FB group. That doesn’t give a clear picture of how Kenya looks as a whole.

Ukichungulia into banks, this is how things look like.

Kes 1,000,000 and above - 214,000 Bank accounts (0.7%)
Kes 100,000 - 1,000,000 - 886,000 Bank accounts (2.2%)
Kes 0 - 100,000 - 29,500,000 Bank accounts (97.1%)

Total Bank accounts 30,600,000 - They all held 2.2Trillion in cash
I don’t know how many people in Kenya hold more than 50K on Mpesa. I guess very few.
SACCOS had another 442Billion - another place Kenyans keep money.

In any case, Kenya is a poor country if 20Million people earn less than 10K and the remaining 20Million, only 1.1Million have 100K and above in their bank account. The other 18.9 have less

20,000,000 Kenyans - Earn less than $100 (10K) per month

18,900,000 Kenyans - Have less than $1,000 (100K) in the bank
900,000 Kenyans - Have between $1,000 - $10,000 in the bank
220,000 Kenyans - Have more than $10,000 in the bank

Most people in Kenya wako na pesa ya ku-survive.
Money passes through their hands for consumption

Total Cash circulating in Kenya’s economy

2.8 Trillion (Total Cash circulating in the economy)
2.4 Trillion is in the Bank
0.4 Billion (400Billion is cash in people’s pockets)

Out of this 2.4Trillion in bank, 1.1Million bank accounts hold 2.2 Trillion

This 1.1Million is the one I explained up there.

Kenya inakaa hivi (This is how Kenya looks like)
Hope some hacker or investor out there now has free information from this forum

You can imagine a group of small people is half this figure you’ve quoted. These are fellas whom a majority are under 30 and others still in campus.

Now picture all the hustlers above that. Try trade with Somalis and you’ll also be amused at how much money they handle on a daily basis.

The other day BuyerBeware roasted CBA loop for promising investment loans to business people but never materialized. You should have seen the bank balances people were quoting when scolding the bank.

When I quote the bank employees, they can gauge bank accounts that have a million plus in their accounts compared to what the CBK Governor gave and arrive to a conclusion.

For instance, you’ve quoted Synovate. These guys only interview around 2,000 people. Their research is hardly reliable. Look at how they flop in politics using the same methodologies.

Hahah, @deewinc wataka kusema all the 120k members of the group disclose their monthly earning and you view them all? :thinking::grin:

Kenya ni poor, ata hii pesa yetu ya writing, CBK knows how much money gets into the country ($ exchange), unless you are paid in Bitcoin. So, if hio pesa haijaleft country na haiko bank, it’s in people’s pockets.

We are almost 50 million people in Kenya. If Kenya wasn’t poor, there are many sectors that can reflect that, as a result of people with money spending it… Regardless of whether it’s in bank or hidden in mattresses :joy:.

You don’t need to drink a whole pot of porridge to know if it has enough sugar. You simply take a spoon, scoop a little bit, taste it, then make a judgement. Sampling in statistics works like tasting sugar from a pot of hot porridge. That’s the most simplest way I could explain how statistical methods work to a layman. Do you get it now or should I explain in a more simpler way?

Synovate is a leading global Market Research company with more than 100 offices across 62 countries. They use statistical methods that are scientific, used all over the world and have stood the test of time. I am shocked that you distrust reports from Central Bank of Kenya, you call them liars, and now you distrust a reputable global market research company, Synovate, and you claim to have reliable information from your simple observation on facebook group and somali businessmen. What interesting thought processes, they defeat logic. Good luck to you, if that is your modus operandi in arriving at decisions.

Next time, try to give educated opinions or try to sound educated.

CBK made a new comment - how the whole Kenyan populace looks like financially

“People who want to exchange amounts above Ksh 5 million will need to contact the CBK. We have, however, analysed these and found that these are very few,”

CBK: Only very few Kenyans hold more than Sh5m

https://businesstoday.co.ke/cbk-only-very-few-kenyans-hold-more-than-sh5m/

Sawa msomi wa Harvard @Kenautic - hii story hatutaaja maliza. I thought the debate rests where we left it but umeiamsha tena. Let’s do this, believe on what you believe is right and I believe on what I believe is right. Tuchoree hii story and let’s focus on other trending posts.