Credit cards are much less common in Kenya than in many countries - M-Pesa and debit cards do most of the work. But a credit card is useful for travel, online shopping in foreign currency, hotel and car hire deposits, and emergencies.
Who issues them
Most large banks issue Visa and Mastercard credit cards, usually to customers who already bank with them. You typically need:
- An account with the bank, often with your salary paid into it.
- Payslips and bank statements, and your ID and KRA PIN.
- A minimum income, depending on the card.
- A clean CRB record. See Checking your CRB status.
Interest and fees
- Interest on unpaid balances is charged monthly and adds up to a high annual rate.
- Pay the full balance each month and most cards charge no interest on purchases.
- Cash withdrawals are charged interest from day one, plus a fee.
- Foreign transactions carry a currency conversion charge.
- Annual fees apply to many cards, especially premium ones.
Alternatives
- Debit cards from your bank work online and abroad for most things.
- Virtual cards - banks and Safaricom offer virtual Visa cards linked to your account or to M-Pesa (such as M-Pesa GlobalPay), for paying online sites that do not take M-Pesa.
- Dollar accounts with a debit card for spending in dollars without converting each time. See Opening a bank account.
Using cards safely
- Turn on transaction alerts by SMS or in the app.
- Don’t let a card out of your sight in restaurants and petrol stations - ask for the card machine to be brought to you.
- Use virtual cards for online subscriptions and unfamiliar sites.
- Report a lost card immediately through the bank’s app or line.
Credit history
Using a credit card and paying on time builds a positive record with credit reference bureaus, which helps with loans and mortgages later.