HOW TO START A BANK AGENT

AGENCY BANKING

It's now possible for banks to operate "branchlessly." This after Central Bank of Kenya allowed agency banking. The agents of a bank perform the following functions:

• Taking deposits
• Withdrawing  cash
• Opening accounts
• Utility payments
• Balance checking
• Mini statements
• School fees payments

The bank an agent works for pays a commission depending with amount of cash traded and the number of transactions. Different banks have different commissions(confirm from the bank before starting your agency). To give an example, Kenya Commercial Bank, KCB shares the charges made on a transaction equally with he agent; that is, if a transaction costs the customer sh.30, the bank takes sh.15 and the agent takes sh.15. For free transactions deposits, the bank pays the agent sh.10.

Different banks have different conditions for one to work as their agent. We will discuss CO-OP Bank, Equity Bank, Family Bank and KCB.

      Co-Operative Bank

What do I need to be an agent?

The first thing is you should have an account with Co-operative Bank. If one already has an account he or she should visit any Co-op bank Branch and apply. One also needs the following documentation for application:

- Certificate of good conduct.

- Financial Status for last two years.

- Financial turn-over.

- Business Permits last 18 months

- Current business permit

- Certificate of registration

- Copy of ID's or Equivalent.

- Two passport size photo graphs.

- Business Owners/Directors CV.

- CBK Form 3- by commissioner of Oaths.

- CBK Form 4

The applicable fees to facilitate approval are:

- CBK application fee -Kshs.1,000

- POS Lease fees -shs.5,000

- Float placement- Determined by customer Limit which is arrived at during appraisal.

Who can be an agent?

• Limited liability companies.
  
• Sole proprietorships.
  
• Partnerships .
  
• Societies.
  
• Co-operative societies.
  
• State corporations.
  
• Trusts.
  
• Public entities.
  

Services that will be offered by Co-op Kwa Jirani.

Service	Cost
Cash withdrawals	ksh. 50
*Cash deposits	ksh. 20
Money Transfer	ksh. 30
Fees Payment	ksh. 50
Utility Payment	ksh. 50
Balance Inquiry	ksh. 10
Mini Statement	ksh. 20

*Cash deposit will be charged Ksh.20 for every Ksh.20,000/= deposited


EQUITY BANK

How to Become an Equity Agent

The process in selecting who offers banking services on the Bank’s behalf is very stringent.  This is to ensure that we select the right partners and that customers can transact with the same security ease and comfort as they would at the branch.
To become an Equity Agent, you need the following:

1. An existing business that has been operating successfully in the same location for at a minimum of two years prior to application.
2. Valid business permits for the existing business.
3. A strategic business location- accessibility ,visibility and security
4. A good reputation and high moral standing.
5. An excellent reach and catchment.

Agency Banking Checklist

1. Agency Banking application duly completed and signed by the applicant.
2. National ID an copies for principal applicant(s).
3. A certificate of good conduct.
4. A brief description of commercial activity for the past 18 months (business profile).
5. Bank and/or Loan statements from any other institution for the past 18 months.
6. Three (3) copies of pre-signed Equity Agent Contract to accompany the application.
7. Copy of certificate of incorporation or certificate of registration of business name as applicable.
8. Articles and memorandum of association / Partnership deed where applicable.
9. Board resolution (applicable to companies and partnerships).
10. Valid business license or permit for any lawful commercial activity carried on by the entity.
11. Audited financial records for the past two years.
12. Sketch map for business and home location.
13. Credit reference bureau report (CRB).
14. Two passport size photos for every applicant
15. Curriculum vitae (C.V) of all the applicants
16. Three coloured photos of the business outlet showing (a) interior view of premises from the door (b) interior view showing stocks (c) outside view-15 meters from door showing nearby premises.
17. Supporting Documents Attached

(a) Agent Outlet Visit Form

(b) Agency Appraisal Form

Payments made

• Ksh.5000 insurance for the POS device
• Ksh.5000 for POS configuragation
• Ksh. 7000 to buy a certain model of a phone

KENYA COMMERCIAL BANK, KCB

How to become a KCB Mtaani Agent

1. The business must be an existing legal entity (Company, Partnership, Sole Proprietorship)
2. The business must be in existence for a minimum of 18 months.
3. The business should be serving at least 50 customers per day
4. The business should have ability and willingness to deposit at least Kshs 100,000 to start off Agent Banking Services
5. The Outlet should be run by at least a Manager and two assistants who have attained minimum KCSE Certificate

 
FAMILY BANK

For sole proprietor/partners, we require the following:

1. Must have an account with Familybank / Open an account with us

2. A minimum deposit of kshs.100, 000/=

3. Certified statement for the last 6 months.

4. Certificate of Good Conduct

5. 2 coloured passport size photos

5. Copy of ID plus Pin certificate

6. Permanent building

7. Must have been in business/commercial activity for the last 18 months

8. Trading Licence for the last 2 years

9. Copy of business registration

10. Curriculum Vitae - CV

Companies:

1 Copy of National ID for Directors

2 Certificate of Good Conduct for Directors

3 Two Passport Size Photographs

4 CV of Business Owner(s)*

5 Certificate of Incorporation

6 Business Pin Certificate

7 Commercial Activities for 18 Months

8 Valid/current Business Certificate

9 Current/valid Business Permit

10 VAT Registration (Where Applicable)

11 Audited Accounts for 2 Years

12 6 Months Business Statements of Account

13 Resolution to Carry out Agent Banking

14 Credit Reference Bureaus

15 Bankers Cheque for Kes 1,000 IFO CBK (Renewable Annually)

16 SASRA Approval (Saccos with Fosa) or Other Regulator