Which Bank Has the Highest Interest Rate for Savings Right Now?

Banks love the words “up to”. A savings account that pays “up to 8.5%” may pay much less on the amount you actually have. This guide shows the highest savings rates that Kenyan banks publish on their own websites, the conditions attached, and what an ordinary saver can realistically expect.

The rates on this page are checked automatically every day: bank rates are read from each bank’s own product page, and the national figures come from the Central Bank of Kenya (CBK). Each figure shows the date it applies to.

Which bank has the highest interest rate for savings right now?

As at our latest check on 5 November 2026, the highest savings rate published on a Kenyan bank's own website among the accounts we track is 8.5% a year on the SBM Bank Platinum Saver (KES) account. Balances below KES 100,000 earn 4%. Recommended opening balance KES 100,000. One withdrawal per quarter without penalty. Interest paid monthly.

The next highest are KCB M-PESA Fixed Savings (7.5% a year), KCB M-PESA Target Savings (7.5% a year), and KCB Bank Simba Savings (up to 7% a year).

Rates marked “up to” usually depend on your balance or savings period. Ask the bank which rate applies to your exact balance before you deposit.

Other banks also advertise “up to” savings rates, but we list only rates we can confirm on the bank’s own page. Safaricom’s M-Shwari Lock Savings rates are tiered by balance; check the current rate in the M-PESA menu under M-Shwari.

What is the average savings interest rate in Kenya?

The average interest rate on ordinary bank savings accounts in Kenya was 3.53% a year in September 2026, according to CBK. The average for all deposits, including fixed deposits, was 6.94%.

This means most savers earn far less than the headline rates above. Two numbers help you judge any savings rate:

• The Central Bank Rate (8.75%, set on 7 October 2026) is CBK’s benchmark. Bank rates tend to rise and fall with it.
• Inflation (7.3% in October 2026) is how fast prices are rising. If your savings earn less than inflation, your money buys less each year even though the balance grows.

How do bank savings compare with Treasury bills?

Government Treasury bills often pay more than ordinary savings accounts. At the latest auction (2 November 2026), the average rates were 8.75% for 91 days, 8.85% for 182 days and 9.03% for 364 days.

Treasury bills lock your money until maturity, and you buy them through CBK’s DhowCSD platform. Money market funds are another option many Kenyans use. Their yields change often, and they are regulated by the Capital Markets Authority, not covered by bank deposit insurance. See How to Invest in Unit Trust Funds in Kenya.

How much will I actually earn?

Here is an example. Suppose you keep KES 100,000 in an account paying 8.5% a year for a full year, and the whole balance earns that rate:

1. Interest before tax: KES 100,000 × 8.5% = KES 8,500.
2. Withholding tax on bank interest (15% for residents): KES 8,500 × 15% = KES 1,275.
3. Interest after tax: KES 7,225.

If the same KES 100,000 earned 3.5% a year, close to the national average for savings accounts, you would get KES 3,500 before tax and KES 2,975 after tax. Monthly compounding and changes in your balance will change the exact figures slightly.

How to choose a high-interest savings account

1. Ask for the rate on your balance. Many accounts are tiered. Ask: “What rate will I earn on KES 20,000?” rather than “What is your best rate?”
2. Check the withdrawal rules. Some accounts allow one withdrawal a month or a quarter, and fixed or locked savings forfeit interest if you withdraw early.
3. Check fees and minimum balances. A monthly fee or a below-minimum charge can cancel out the extra interest.
4. Remember the tax. Banks deduct 15% withholding tax from interest before paying you.
5. Confirm the bank is licensed by CBK. Only licensed banks and microfinance banks are covered by the Kenya Deposit Insurance Corporation (KDIC). See our list of licensed microfinance banks.
6. Know the deposit insurance limit. KDIC protects up to KES 500,000 per depositor per bank. All your accounts at one bank count together. A proposal to raise the limit to KES 1 million had not taken effect in November 2026; check KDIC’s website for the current limit.

Tip: If you save mainly through M-PESA, compare the current rates for M-Shwari Lock Savings and KCB M-PESA Fixed Savings before you lock money away, and note how long the money will be locked.

Warning: Be wary of anyone promising guaranteed savings returns far above the rates on this page. Check that the institution is licensed by CBK, CMA or SASRA. Read about [Kenyan banks that have collapsed](/a-list-of-collapsed-kenyan-banks/) to see why licensing and deposit insurance matter.

Sources and useful links

• SBM Bank Kenya: SBM Platinum Saver Account
• KCB Bank: KCB M-PESA Savings
• KCB Bank: Simba Savings Account
• Central Bank of Kenya: Key Rates
• Central Bank of Kenya: Commercial Banks Weighted Average Rates
• Central Bank of Kenya: Treasury Bills
• Kenya Deposit Insurance Corporation: Deposit Insurance
• Kenya Revenue Authority: Withholding Income Tax