Fixed deposit rates in Kenyan banks range from about 4% to 10% a year for a 12-month deposit, before the 15% withholding tax. Smaller banks pay the most: Kingdom Bank and Victoria Commercial Bank advertise up to 10%, while large banks such as Co-operative Bank, Equity and ABSA pay 4–5%. NCBA is the highest-paying large bank at 8.64%. The figures below come from Serrari’s fixed deposit comparison, updated September 15, 2026, which checked each bank’s published or quoted rate, and from bank websites.
Fixed deposit rates in Kenyan banks: 12-month comparison
| Bank | 3 months | 6 months | 12 months | 12M after 15% tax | Minimum (KSh) |
|---|---|---|---|---|---|
| Kingdom Bank | — | — | up to 10.00% | 8.50% | 50,000 |
| Victoria Commercial Bank | 8.75% | 9.00% | 10.00% | 8.50% | 100,000 |
| Consolidated Bank | up to 8.00% | up to 8.50% | up to 9.50% | 8.07% | 20,000 |
| NCBA | 7.40% | 7.83% | 8.64% | 7.34% | 100,000 |
| SBM Bank | — | — | up to 8.50% | 7.23% | 50,000 |
| KCB | 5.75% | 5.75% | 6.50% | 5.53% | 50,000 |
| Stanbic | 5.00% | 5.25% | 6.00% | 5.10% | 20,000 |
| DTB | 4.75% | 5.20% | 5.75% | 4.89% | 20,000 |
| I&M | 5.05% | 5.55% | 5.70% | 4.85% | 50,000 |
| Equity | — | — | up to 5.00% | 4.25% | 50,000 |
| Co-operative Bank | 4.50% | 4.75% | 5.00% | 4.25% | 50,000 |
| ABSA Kenya | up to 3.60% | up to 3.80% | up to 4.00% | 3.40% | 100,000 |
“Up to” means a tiered or negotiable rate, usually for larger amounts. Standard Chartered’s own counter rates show how much size matters: 2.00% for 12 months on KSh100,000 to KSh1,999,999, rising to 5.00% only for KSh100 million or more. Rates change often, so confirm with the bank before depositing.
How fixed deposits compare with the market
- Average deposit rate: 6.94% in September 2026, according to CBK’s weighted average rates. The average savings account paid 3.53%.
- Central Bank Rate: 8.75%, held on October 7, 2026.
- 91-day Treasury bill: about 8.75%, also taxed at 15%.
- Inflation: 7.3% in October 2026, so a 5% fixed deposit loses value in real terms.
For many savers, Treasury bills and money market funds pay more than a big-bank fixed deposit. See money market fund vs fixed deposit and Treasury bills vs bonds.
How much will I earn? Example
KSh500,000 for 12 months at 8.64% earns KSh43,200 gross. After 15% withholding tax (KSh6,480), you receive KSh36,720. At 5%, the same deposit earns KSh25,000 gross and KSh21,250 after tax, a difference of KSh15,470.
How to get a better rate
- Negotiate: most banks have a board rate and will offer more for larger sums or loyal customers. Bring a competing quote.
- Check the minimum: some best rates apply only above KSh1 million.
- Ask about early withdrawal: breaking a deposit usually forfeits some or all interest.
- Check safety: deposits are protected by the Kenya Deposit Insurance Corporation only up to KSh500,000 per depositor per bank, so spread larger amounts across banks.
- Use deposits as security: many banks lend against fixed deposits at lower rates. CBK is also working on making it easier to move secured loans between banks; read about the electronic collateral registry.
Who a fixed deposit suits
A fixed deposit suits savers who want a known return and do not need the money for a set period, such as school fees due next year, a land deposit or an emergency fund that is already covered elsewhere. Because the rate is locked, you are protected if market rates fall during the term. The trade-off is flexibility: if you need the money early, the bank may cut or cancel the interest. Businesses and chamas also use fixed deposits to park cash between projects, and some banks offer higher rates for group accounts that keep larger balances.
Before you sign, ask for the rate in writing, how interest is paid (monthly or at maturity), whether the deposit renews automatically and at what rate, and the exact penalty for breaking it early. Automatic renewal at a lower board rate is a common way savers lose out without noticing.
FAQ
Which bank has the highest fixed deposit rate in Kenya?
Kingdom Bank and Victoria Commercial Bank advertised up to 10% for 12 months in September 2026, followed by Consolidated Bank at up to 9.5%.
Is fixed deposit interest taxed in Kenya?
Yes. Banks deduct 15% withholding tax from the interest before paying you.
Is a fixed deposit better than a money market fund?
Fixed deposits lock your rate for the term, while money market funds pay variable rates but let you withdraw within days. Compare net returns after tax and fees.
Updated October 2026.
Related: Treasury Bill Calculator Kenya: How to Work Out Your T-Bill Interest (November 2026 Rates)
Related: Best Bank for Chamas in Kenya 2026: Co-op Mshiriki vs Family Bank vs KCB Chama
Prefer WhatsApp? Follow Business Radar on WhatsApp
Weekly, free. We only use your email for this newsletter and you can unsubscribe in one click. Privacy policy.
