Banking language can feel technical, even intimidating, especially when you are opening an account, applying for a loan, or using mobile banking.
This glossary defines common banking terms used in Kenya in simple language, so you can understand statements, fees, account types, and everyday transactions more easily.
A
- Account balance ➨ The amount of money in your account at a given time.
- Account statement ➨ A record showing account activity such as deposits, withdrawals, fees, and transfers.
- ATM ➨ Automated Teller Machine, used for cash withdrawals, balance checks, and some transfers.
- AML ➨ Anti-Money Laundering; rules and checks used to prevent illegal money flows.
B
- Banker’s cheque ➨ A cheque issued and guaranteed by a bank.
- Basis point ➨ A unit used to measure small changes in interest rates.
- Biashara ➨ Business.
- Biashara account ➨ A business bank account.
- Branch ➨ A physical bank location where services are provided.
- BIC ➨ Bank Identifier Code; an international code used to identify a bank.
C
- Cash deposit ➨ Putting money into a bank account.
- Cash withdrawal ➨ Taking money out of a bank account.
- Chequebook ➨ A book of blank cheques issued by the bank.
- Current account ➨ An account designed for frequent transactions.
D
- Debit card ➨ A card used to make payments directly from your account.
- Deposit ➨ Money paid into a bank account.
- Direct debit ➨ An automatic instruction allowing a company to collect money from your account.
E
- E-banking ➨ Digital banking services accessed online or through a mobile app.
- Mobile banking ➨ Common names used for digital banking platforms in Kenya.
- EFT — Electronic Funds Transfer; moving money electronically between accounts.
F
- Fixed deposit ➨ Money placed in a bank for a set period to earn interest.
I
- Interest ➨ The cost of borrowing money or the return earned on savings.
- IBAN ➨ International Bank Account Number; used in cross-border banking in some systems.
K
- KYC ➨ “Know Your Customer,” the verification information a bank collects from a client.
L
- Ledger fee ➨ A monthly charge some banks apply to maintain an account.
- Loan ➨ Money borrowed from a bank and repaid over time, usually with interest.
M
- Minimum balance ➨ The lowest amount a bank requires you to keep in an account.
- Monthly maintenance fee ➨ A recurring charge for keeping an account open.
- MMF ➨ Money Market Fund.
- M-Pesa paybill ➨ A business payment method used to receive mobile payments.
- Money transfer ➨ Moving money from one account or person to another.
N
- NPA / NPL ➨ Non-performing loan; a loan not being repaid as agreed.
O
- Overdraft ➨ A facility that allows you to spend more than what is in your account, up to an approved limit.
P
- PIN ➨ Personal Identification Number used to secure cards and digital banking.
R
- RTGS ➨ Real Time Gross Settlement; used for large-value bank transfers.
S
- SACCO ➨ Savings and Credit Cooperative Organisation.
- Statement balance ➨ The balance shown on a bank statement at a given time.
- Standing order ➨ A regular payment set up to be sent automatically.
- Sole proprietor ➨ A business owned and run by one person.
- SME ➨ Small and Medium Enterprise.
- SWIFT ➨ Society for Worldwide Interbank Financial Telecommunication; used for international transfers.
- STR ➨ Suspicious Transaction Report.
T
- Tellering ➨ Over-the-counter banking service at a branch.
- Till number ➨ A merchant number used to receive mobile payments.
- Transaction fee ➨ A charge for making a payment, withdrawal, or transfer.
- Transfer ➨ Moving money from one account to another.
U
- USSD ➨ Menu-based mobile banking used on feature phones.
V
- Value date ➨ The date from which deposited money becomes available, or interest starts.
W
- Withdraw ➨ To take money out of an account.
This glossary is especially useful for entrepreneurs, SME owners, and anyone navigating banking in Kenya for the first time. It helps make account comparisons, fee schedules, and product terms easier to understand.