This archive report was first published on 5 January 2022.
January 5, 2022, marked a significant development for Equity Bank customers as the lender introduced an annual debit card fee of Ksh240.
The fee, which will be deducted from customers' accounts once a year, is expected to generate billions of shillings in non-interest income for the bank.
Equity Bank Kenya stated that the fee will be applied 12 months after the card is issued and continues until the card's expiry date.
“We wish to advise that this is an annual charge that was recently introduced as per our tariff guide. In this regard, Sh240 shall be deducted from your account only once per year, for the period the card remains active,” Equity Bank Kenya said in a statement.
The introduction of the debit card fee is part of a broader trend of banks increasing their non-interest income through various fees.
Equity Bank's non-interest income stood at Sh31.9 billion in its latest financials for the nine months ended September.
The new charge is expected to boost Equity's non-interest income by roping in millions of retail clients who previously only paid a one-time fee when acquiring or renewing their debit cards.
It also provides stable and recurring revenue as most clients hold debit cards for withdrawing cash at ATMs and making payments at point of sale terminals.
