Can my bank raise its charges whenever it wants?
Banking Act · sources read 5 Oct 2026
No. A bank, financial institution or mortgage finance company may not increase its rate of banking or other charges without the prior approval of the Cabinet Secretary for Finance. If you think a charge was raised wrongly, complain to the bank first, then to the Central Bank of Kenya.
- How long
- Your bank should acknowledge your complaint within 48 hours and aim to resolve it within 7 days.
- Deadline
- The Cabinet Secretary decides a bank's application to raise charges within 14 days if the increase is below average inflation.
- Deadline
- If the increase is above average inflation, the decision comes within 30 days.
- Where
- First your bank; then in writing to the Central Bank of Kenya, Haile Selassie Avenue, Nairobi (P.O. Box 60000-00200) or via the contact page on centralbank.go.ke
Steps
- Check the bank's displayed list of charges. Every bank must post its rates and charges in a clear spot at each place of business.
- Make a formal complaint to your bank through any of its channels, with full details of the charge.
- If the bank's answer does not satisfy you, write to the Central Bank of Kenya with the details, the bank's reply and copies of your letters or emails with the bank.
- You also keep the right to go to court against the bank.
Watch out
- CBK cannot handle a complaint that is already before a court.
- A bank that breaks a rule in the Banking Act commits an offence and can be fined up to KSh 100,000.
- To raise a charge, the bank must apply to the Cabinet Secretary for Finance through the Governor of the Central Bank, who considers average inflation over the past 12 months.
- For a new product, the bank must notify the Cabinet Secretary in writing of its charges before it starts charging them.
- The Regulations do not require the bank to notify each customer personally before an approved increase. They only require charges to be displayed at every branch.
Who this covers
- Customers of banks, financial institutions and mortgage finance companies covered by the Banking Act.
- The approval must come from the Cabinet Secretary responsible for Finance.
Official sources (3)
- Banking Act, Cap. 488 (legislation as at 27 December 2024) centralbank.go.ke · read 3 Oct 2026
- Resolution of customer complaints in the banking sector centralbank.go.ke · read 3 Oct 2026
- Banking (Increase of Rate of Banking and Other Charges) Regulations (L.N. 34 of 2006) new.kenyalaw.org · read 5 Oct 2026