Kenya’s local and international banks offer a variety of account products tailored to the needs of business owners and corporate institutions. These corporate bank account facilities are provided in both USD and KSHS.

A business account is an excellent option for saving, managing, and growing your company’s financial assets. It offers customers the ability to make multiple transactions and payments simultaneously. You are also issued a complimentary chequebook, free monthly statements, and access to several finance opportunities.

This article provides a holistic overview of how to open a business bank account in Kenya, the requirements, and the benefits.

Does Your Business Need a Business Bank Account?

You need a business bank account if you run a business that accepts or transacts money or other financial assets in your business name. That means people pay money to that business or pay out money or other financial assets to people using that business’s name.

A business account will protect you and help your company stay legally compliant. It also gives you, your customers, and your employees access to certain benefits associated with such corporate accounts.

Also Read:Lenco: A Better Expense Management Tool For SMEs

Benefits of a Business Bank Account

Most local and international banks operating in Kenya offer various bonuses that common standard or personal accounts do not provide. These perks are ultimately made available to eligible customers and business owners who’ve fulfilled all requirements and operate business accounts.

Purchasing Power

A business account allows you to make large purchases for your startup or SME. It also provides you with a good credit history, ultimately enhancing your business reputation.

Security & Protection

A business bank account offers an additional layer of protection for your finances. It achieves this by providing your business funds with limited personal liability protection and separating them from your assets.

In addition, you also have access to merchant services that offer third-party protection for your clients and customers. This protection covers them during purchases and ensures the safety of their data.

Online Banking and Mobile Money Management

This allows you and your customers to access your company’s financial services (for payments) remotely, 24/7.

Preparedness

Business banking usually offers customers additional incentives instead of future emergencies. These provisions may include an extra line of credit for your business. With this, you can quickly address unforeseen emergencies (e.g., if your company needs new work equipment, etc.).

Professionalism

Operating a business account ultimately enhances the customer experience of your clients. It makes things more flexible for them by offering multiple means of payment. For instance, they can make payments with cheques, credit cards, etc., instead of interfacing with you directly.

Furthermore, you can delegate specific tasks to your employees, including monitoring and confirming transactions, balancing records, and assisting with finance-related customer care.

 Multiple Signatories

You can authorize more than one signatory for your checks. This can also be applied to debit card transactions, deposits, etc.

Things to Consider When Opening a Business Account

Different Kenyan banks provide other product and service offerings for their corporate accounts. The service rates and fees may vary from one bank to another. Here are some things to consider when deciding on a bank to open your business account with:

 Business Account

• Early termination fees
• Interest rates for lines of credit
• Interest rates for savings and checking
• Introductory offers
• Minimum account balance fees
• Transaction fees
• Standing charges
• Internet banking fees
• Branches (as it would benefit both you and your customers)

 Merchant Services Account

• ACH daily batch fees
• Address Verification Service (AVS) fees
• Discount rates
• Monthly minimum fees
• Transaction fees

How to Open a Kenyan Business Account

Once you’ve decided on your Kenyan bank of choice, the rest is easy if you’re eligible. You only need to go to the local branch to begin the process, or you may do it via their online platform.

Below are some of the most common requirements for opening a Business Account in Kenya. Some banks may require less or more.

• 1 Color Passport for company Directors/Board Members
• Board Resolution for Business Account or Minutes
• Business license
• Certificate of Registration/Incorporation
• Copy of National IDs (for company Directors/Board Members)
• Copy of Partnership Deed or Articles of Association
• Employer Identification Number (EIN)
• Ownership agreements
• Proof of Identification (for all company directors)
• Proof of Residence
• Social Security number (SSN) if you are a sole proprietorship
• Your company’s Business Formation Documents

Ultimately, you endeavored to provide your complete business details — registered address, contact details, means of identification, company house registration, expected annual turnover, proof of credit banking history, etc.

Legal Considerations

As a sole proprietor requesting a business account, you must register your “Doing Business As” (DBA) identification with the appropriate legal authority. Afterward, you can go ahead with other account opening processes.

 Start-ups and Small Business (SME) owners might forfeit liability protection if they choose to combine their business and personal finances. This applies if you grant creditors, the Internal Revenue Service, etc., the ability to confiscate your assets to recover debts.

Having separate accounts for your business and personal finances makes tracking and planning your tax while monitoring expenses easier. Businesses structured as limited liability companies (LLCs) or corporations are lawfully required to have separate business and personal finance accounts.

Frequently Asked Questions

Who can open an SME business account?

Small and Medium Business Enterprises can open this account if they have daily banking needs.

How much does it cost to open a business account in Kenya?

Different banks have different minimum opening requirements. On average, you may need at least KSHS 5,000.

What is the minimum operating balance?

On average, Kenyan current accounts have no minimum operating balance.

How much is the ledger fee?

The fees vary from one bank to another.

What is the charge for chequebook withdrawals?

There are no additional charges.

Can I open a business account with foreign currency?

Yes. USD, EURO, and GBP are among the foreign currencies you may be allowed to open a business account with within Kenya. 

Also Read:How to Open a Kenya Community Bank (KCB) Business Account as a Foreigner