Saving in investment banks is one popular way for Kenyans to grow wealth. However, it is important to note that not all banks are ideal for investing. Choosing the best investment bank is critical and so you need to be careful for a good investment portfolio. Things to consider at this point will include but not limited to a bank’s reputation, experience, trust, and accessibility.
Factors to Consider when Selecting an Investment Bank in Kenya
You need to consider the following factors when choosing a bank to invest in Kenya.
- Reputation and experience of the bank
- Networks the bank has with investors
- Financial capacity and resources
- The accessibility of the bank
The following are some of the best investment banks in Kenya.
1. Equity Bank
Equity Bank is among the most popular banks in the country. Both locals and foreigners can open investment bank accounts with Equity bank and start investing. Equity bank’s popular products are the wings to fly scholarships for bright needy students and the Equitel sim card that you can use to deposit, withdraw, apply for loans, and bank statements.
Equity bank’s main activities include investments, credit and debit cards, mortgages, and loans. If you want to buy and sell shares via Equity Bank, you will need to have an Equity bank account and open a Central Depository System (CDS) account.
2. African Alliance Investment Bank (AAIB)
The African Alliance Investment Bank also tops in the list of best investment banks in Kenya. It originates from South Africa and has branches in Kenya. The bank offers several financial services such as financial research, private equity, brokerage services, banking, wealth management and corporate finance.
3. ABC Bank/ ABC Capital
ABC Capital investment bank is a stockbroker that provides advice and guidance on investing in the Kenyan capital markets. It is also a member of the Nairobi Securities Exchange (NSE) Kenya. Its services include corporate finance, stock brokerage and portfolio management.
4. The Central Bank of Kenya
The Central Bank of Kenya (CBK) has several functions including formulating monetary policies to maintain price stability, issuing currencies, forming and implementing foreign exchange policies, and promoting financial stability.
The investment options it offers include Treasury Bills and Treasury Bonds. You can invest in Treasury Bills with a minimum of Ksh 100,000 and a minimum of Ksh 50,000 for Treasury Bonds.
5. Stanbic Bank
Stanbic Bank is among the best investment banks in Kenya and is a member of the Standard Bank Group. It owns an investment entity known as the SBG Securities which facilitates buying and selling of shares, stock, bonds, etc.
SBG also has the M-shares platform through which clients can buy and sell shares using mobile phones and the *209# USSD shortcode.
6. AIB Capital Ltd
AIB Capital, formerly Afrika Investment Bank is one of the first investment banks in Kenya to use mobile technology (MPESA transfers) and online trading. These features enable users to buy and sell shares, top-up using mobile money and monitor their accounts online.
With AIB Capital limited, clients deal with the bank directly instead of sharing their financial information with third parties.
Read also: Top investment companies in Kenya.
7. Cooperative Bank of Kenya
The Cooperative Bank has the second largest customer base in Kenya. It provides a range of money market investment products including Treasury Bills, Treasury Bonds, Call Deposit Accounts, and Fixed Deposit Accounts. It also offers other services such as asset management, loans, savings, debit cards, etc.
8. NCBA Bank
The NCBA Bank Kenya is a leading bank in online and mobile banking. It is user-friendly and offers several financial services including commercial banking, personal loans, mortgages, foreign exchange services and insurance.
NCBA Bank is a leader in mobile banking. You can easily transfer money from MPESA to your NCBA account and vice versa. You can invest in the bank through fixed deposit accounts and forex trading.
9. Faida Investment Bank
Faida Investment Bank deals with the buying and selling of shares and securities at the Nairobi Securities Exchange. The bank offers services for investors interested in trading in securities issued by the government and public quoted companies. It offers live markets, research, online trading and brokerage services.
10. Dyer and Blair Investment Bank
Dyer and Blair Investment Bank became a full-fledged investment bank in 2014. It is an investment bank in Kenya that is regulated by the Capital Markets Authority. The firm engages in investment banking, asset management, securities, unit trusts, investment management, brokerage services, and other financial services.
Read also: Best investment saccos in Kenya.
Role of Investment Banks in Kenya
Investment banks play the following functions in Kenya.
- Act as mediators between investors and investment opportunities
- Banks act as stockbrokers in the sale shares on behalf of their clients
- Advise clients and investors about profitable investment opportunities
Investment banks in Kenya act as mediators between investors and large corporations. Some act as stockbrokers, and they advise investors on how to invest wisely. It is crucial that you take your time to research and talk to knowledgeable people so that when it comes to making a choice, you make an informed decision. Having the right investment bank will help you build a good investment portfolio.