The document presents a comparative analysis of banking products between the Commercial Bank of Ethiopia (CBE) and selected Kenyan commercial banks, aiming to identify product gaps and suggest improvements for CBE to become a world-class institution. It highlights the historical context of Ethiopian banking, examines the main products and services offered by selected Kenyan banks such as KCB, FCB, and Equity Bank, and discusses the significance of financial innovation and competition in the banking sector. The findings underscore the importance of adapting to market demands and learning from comparative banking practices in Kenya for enhanced service delivery at CBE.

2. A Comparative Analysis of Banking
Products Between Commercial Bank of
Ethiopia and Selected Kenyan
Commercial Banks.
Prepared by: Dawit Haileyesus
Advisor: Wegayehu G/mariam

3.  Background of the Study
 Statement of the Problem
 Objective of the Project
 Research Methodology
 Significance of the Project
 Limitation of the Project
 Overview of Ethiopian Financial Sector
 Overview of Kenyan Financial Sector
 Main Products of Kenyan Commercial Banks
-Kenya Commercial Bank (KCB)
-First Community Bank (FCB)
-Equity Bank
 M-PESA
 Commercial Bank of Ethiopia (CBE)
 Lesson Learnt to CBE
 Suggested Products to CBE
 Conclusion
 Recommendations

4.  The fundamental role of monetary and financial
institutions for economic development is widely
recognized by economic literature.
 Basic conditions, although quite rudimentary, in
financial field conducive to economic advancement
were made available in Ethiopia at the beginning of
the 20 century.

5.  There are five principal events, dividing Ethiopian banking
history into periods.
 1st event was establishment in 1906 of the Bank of Abyssinia.
 2nd event was Italian occupation in 1936, a broad colonial
banking network, extended to encompass all Italian
possessions in the Horn of Africa and closely linked with the
metropolitan financial system.
 3rd event was, in 1943, establishment of the State Bank of
Ethiopia
 4th event was the revolution of 1974, nationalized companies
and shaped a “socialist banking” “suited” to Ethiopia, the
whole credit system being based on the central bank and three
state-owned financial institutions, each of them enjoying
monopoly in its respective market.
 5th event was a financial sector reform and liberalization
according to Monetary and Banking Proclamation of 1994.

6.  Commercial banks assaulted by the pressures of
globalization, competition from non-banking
financial institutions, and volatile market dynamics
are constantly seeking new ways to add value to
their services.
 The purpose of this project is to identify and
indicate Bank products of some selected Kenyan
Commercial Banks and the gaps of CBE in relation
to bank products to become world class bank in
providing these products.

7. Based on the purpose the project raised the
following questions;
1. What are the selected Kenyan Commercial
Banks product types?
2. What are the main products of CBE?
3. Is there any products gap between CBE and
Kenyan Commercial Banks?
4. How should CBE need to fill the product
gap?

8. • The general objective of the study is to identify
product gaps of CBE to become World Class
Commercial Bank by comparing with some
selected Kenyan Commercial Banks.
Specifically, the study has the following
objectives
 To identify Bank products of some selected
Kenyan Commercial Banks.
 To identify CBE’s products.
 To point out lessons learned from the Kenyan
Commercial Banks. And
 To suggest possible products to CBE.

9.  This project mainly dependent on secondary data
and also primary data obtained from Kenyan
Commercial Banks and CBE.
 The method of data analysis is purely qualitative
but some quantitative data analysis employed.
 The source of secondary data obtained from annual
reports of NBE, CBK, promotional materials and
websites of CBE, KCB, FCB, Equity Bank and various
research outputs in the area.
 The source of primary data collected in the form of
questionnaire and field observation from KCB, FCB,
Equity Bank Moyale Branch officials and CBE
officials from Strategy Management & Planning.

10.  Commercial Bank of Ethiopia uses the project as an
input to improve existing and develop new products
from the lessons learnt from the above selected
Kenyan Commercial Banks and draw a strategy to
implement these products to become a world class
bank by 2025.
 The project will help the employees to know about
banking products of CBE and the above Selected
Kenyan Commercial Banks.
 Other stakeholders and the general public also
benefited by using for further knowledge.
 Researchers uses as an input to conduct further
researches on CBE and the banking sector in general.

11.  The study constrained by resources of finance (budget
are not allocated for this project work) and limited
time.
 Within this limited time and budget that is available to
the project not all forty four Commercial Banks in
Kenya were assessed because in Moyale only three
Kenyan Commercial Banks are available affected the
amount of data collected.
 The researcher tried, as much as possible, to obtain
primary data from the three selected Kenyan
commercial banks and from CBE.

12.  GDP grow in 2011/12, Real GDP registered a growth
of 8.8 percent compared to the 5.5 percent
estimate for Sub-Saharan Africa in the same period.
 Moreover, the economy expanded rapidly mirroring
the performance of the economy, the growth of
nominal GDP per capita rose to USD 510 from USD
389 in the preceding year, registering a 31.0
percent increase.

13.  The major financial institutions operating in Ethiopia
are banks, insurance companies and micro-finance
institutions.
 The number of banks operating in the country during
the fiscal year reached 17, of which 14 were private,
and the remaining 3 state-owned.
 During the fiscal year, 319 new branches were opened
raising the total branch network in the country to 1,289
from 970 last year.
 As a result, bank branch to population ratio declined
from 65,415.83 people to 62,063.60 in 2011/12.

14.  The number of bank branches in Addis Ababa, reached
430 indicating the booming economic activities in the
central city.
 The total resource mobilized by the banking system
increased by 16.6 percent and reached Birr 89.2 billion
at the end of 2011/12.
 Spurred by remarkable branch expansion, deposit
liabilities of the banking system reached Birr 187.3
billion.
 Demand deposits accounted for 49.3 percent of the
total deposits followed by saving deposits (44 percent)
and time deposit (6.7 percent).
 The share of private banks in deposit mobilization is
31.9 percent. CBE alone mobilized 65.9 percent of the
total deposit due to its wider branch network.

15.  The Kenya economy grew by 4.6 percent in 2012.
 As at 31st December 2012, the banking sector consisted
of the Central Bank of Kenya, as the regulatory
authority.
 44 banking institutions (43 commercial banks and 1
mortgage finance company -MFC), 5 representative
offices of foreign banks, 8 Deposit Taking Microfinance
Institutions (DTMs), 2 Credit Reference Bureaus (CRBs)
and 112 Forex Bureaus (FXBs).
 During the year 2012, banks increased their branch
network by 111, which translated to a total of 1,272
branches.

16. In this section we review the main
products of the following Commercial
Banks and Telecom Company;
 Kenya Commercial Bank (KCB)
 First Community Bank (FCB)
 Equity Bank
 Safaricom
 Commercial Bank of Ethiopia (CBE)

17. KCB established in 1896 along east African coastline,
it has grown from a simple outfit to a world class
operation. The bank provides its customers and the
general population with the widest branch network of
over 200 outlets.
 Vision
To be the preferred financial solutions provider in
Africa with global reach
 Mission
To drive efficiency whist growing market share in
order to be the preferred financial solutions provider
in Africa with global reach.

18.  Putting the customer first
 Working together as a team
 Being professional in everything we do
 Willingness to change
 Caring for the community
 Purpose
When we look at Africa, we see infinite potential. Walking
with our customers, we committed to making a
difference through partnership and shared success.
Matching local know-how with global thinking, we
measure success when better banking improves lives,
enabling a brighter future together.

19.  KCB CUB ACCOUNT
 KCB STUDENT PLUS ACCOUNT
 KCB MAPATO ACCOUNT
 KCB SIMBA SAVINGS ACCOUNT
 KCB JLINUE ACCOUNT
 KCB AMANA ACCOUNT
 KCB EASY PAY LOAN
 SALARY ADVANCE
 KCB PERSONAL LOAN
 MASOMO LOAN
 KCB BUSINESS CURRENT ACCOUNTS
 KCB FIXED & SHORT TERM DEPOSITS
 KCB MAVUNO LOAN

20. -KCB SME LOAN -KCB GRACE LOANS
-KCB BIASHARA CLUB -KCB SUPPLIER’S CREDIT
-BANC ASSURANCE -IMPORT LETTERS OF CREDIT
-DOCUMENTARY COLLECTIONS -GUARANTEES
-PRE-SHIPMENT FINANCE -BILLS DISCOUNTING FACILITY
-IMPORT FINANCE FACILITY -POST IMPORT FINANCE FACILITY
-STOCK FINANCING FACILITY -INVOICE DISCOUNTING
-BANKERS ACCEPTANCES -VEHICLE AND ASSET FINANCE
-LEASING -INSURANCE PREMIUM FINANCING
-STRUCTURED ASSET FINANCE SCHEMES

21.  FCB is the youngest bank established in 2008 as the
first fully fledged Sharia’h compliant bank to be
licensed by the Central Bank of Kenya (CBK) to
offer banking services on a fully fledged Sharia’h
basis.
 The bank has the branch network of 17 outlets
across the region and has more than 1,200 ATM’s
and 3,000 point of sale countrywide.

22.  Vision
“To be the preferred Sharia’h Compliant Financial Services
Partner in all places we choose to operate.”
 Mission
“To operate as a responsible corporate citizen, foster growth
for our customers, employees, shareholders and the
community through the provision of innovative Sharia’h
Complaint Financial Solutions.”
 Values
“Our value proposition is to be and remains ‘The home of
Sharia’h compliant banking’ delivering innovative Sharia’h
compliant financial products, services and solutions to our
valued clientele. We stand to offer Sharia’h compliant
banking services and solutions to all persons irrespective of
their religion, race, color and creed.”

23.  Fairness
FCB will work with all its stakeholders in a fair and honest manner. FCB will create
partnerships which lead to win-win situations with all those who transact with it.
 Innovation
FCB embraces change, flexibility and continuously adapts to a rapidly evolving world.
FCB strives to continuously perpetuates excellence and provide innovative Sharia’h
compliant banking solutions. In response to the dynamic needs of its clientele, FCB
will look for creative, new and better ways to provide its expertise in all dimensions
of business.
 Responsibility
FCB will conduct its business with the highest standards of ethics, adherence to the
law and doing what is right. FCB will exercise the highest level of responsibility in
managing the financial affairs of all its stakeholders.
 Sharia’h Compliance
This is the essence of FCB’s existence and remains for FCB a commitment beyond
banking.
 Teamwork
We are committed to supporting each other, taking collective ownership and
responsibility of all we do and winning together as a team.

24.  PERSONAL CURRENT ACCOUNTS
 SALARY ACCOUNT
 BIASHARA CURRENT ACCOUNT
 CORPORATE CURRENT ACCOUNT
 SCHOOL OPERATING ACCOUNT
 LULU ACCOUNT
 CHECK PLUS ACCOUNT
 UFANISI BINAFSI ACCOUNT
 UFANISI CHAMA ACCOUNT
 SAHLAH ACCOUNT
 BUSARA SAVINGS ACCOUNT
 LABBEYK ACCOUNT
 STUDENTS ACCOUNT

25.  SCHOOL TUITION ACCOUNT
 INVEST PLUS (FIXED MATURITY ACCOUNT)
 ASSET FINANCE
 TRADE FINANCE
 REAL ESTATE FINANCE
 SME FINANCE
 FCB PROFESSIONAL PLUS
 LULU ADVANTAGE
 LPO FINANCING
 BORESHA MIFUGO
 VIJANA TUSTAWI
 CHECK OFF FACILITY
 ELIMIKA NA FCB
 YOUNG COMMUNITY SAVERS ACCOUNT

26.  Equity Bank established in 1984 as a micro finance
institution but after twenty years in 2004 Equity
bank reestablished as a Commercial Bank.
 The bank has over 160 branches to serve eight
million customers.

27.  VISION
To be the champion of the socio-economic prosperity of the
people of Africa
 MISSION
We offer inclusive, customer focused financial services that
socially and economically empower our clients and other
stakeholders.
 POSITIONING STATEMENT
Equity provides inclusive financial services that transform
livelihoods, give dignity and expand opportunities.
 TAGLINE
“Your Listening Caring Partner”
 MOTTO
Growing Together In Trust

28. We exist to transform the lives and livelihoods of our
people socially and economically by availing those
modern, inclusive financial services that maximize their
opportunities.
 VALUES
 Professionalism
 Integrity
 Creativity & Innovation
 Teamwork
 Unity of Purpose
 Respect & Dignity for Customers
 Effective Corporate Governance

29.  CURRENT ACCOUNTS- BUSINESS/PERSONAL
 EQUITY ORDINARY ACCOUNT- SAVINGS
 FIXED DEPOSIT ACCOUNT
 FOREIGN CURRENCY- FIXED DEPOSIT ACCOUNT
 DIASPORA BANKING
 SME LOANS
 MICRO BUSINESS LOANS
 ASSET FINANCE LOANS
 AGRICULTURE LOANS
 MERCHANDISED LOAN

30.  CONSUMER ASSET FINANCE
 SALARY ADVANCE
 FLEXI-SALO
 EQUILOAN
 BANK GUARANTEES
 LPO FINANCING
 INVOICE DISCOUNTING
 IMPORT AND EXPORT COLLECTIONS
 LETTERS OF CREDIT
 PRE-SHIPMENT FINANCING
 POST-IMPORT FINANCING

31.  Launched in 2007, M-PESA enables customers to
transfer money quickly and cheaply without
needing to have a (costly) bank account; money can
be uploaded and withdrawn from a network of
agents and used for transfers, bill payments, and
airtime purchase.
 More than 80 percent of adult Kenyans have made
use of mobile money services.
 M-PESA is provided by Safari-com Telecom company

32.  Safaricom+ Menu
 Messaging Services, Internet & More, Fun, My
Account, My Services, Info Kiosk, and M-Banking
Services.
 M-Banking services provided currently in
collaboration of nineteen Kenyan commercial
banks.

33.  Send Money; either to SIM contacts or to new
numbers.
 Withdraw Cash; from Agent or from ATM (entering
Agent or ATM code)
 Buy Airtime; to my phone or other phone.
 M-Shwari; Activate account and terms & conditions.
 Lipa Na M-PESA; pay bill (enter business No.) and
buy goods and services (enter till No.).
 My Account; Show Balance (enter M-PESA Pin), call
support, change pin, secret word, language
(Kiswahili or English), and update menu.

34.  CBE Established in 1942 pioneer to introduce
modern banking to Ethiopia. It has more than 750
branches and more than 500 ATMs stretched across
the country.
 Currently CBE has more than 6 million account
holders and 14,000 talented and committed
employees.

35.  Vision
To become a World- Class Commercial Bank by the
year 2025.
 Mission
We are committed to best realize stakeholders’ needs
through enhanced financial intermediation globally
and supporting national development priorities, by
deploying highly motivated, skilled and disciplined
employees as well as state-of-the-art technology.
We strongly believe that winning the public
confidence is the basis of our success.

36. -Corporate Citizenship
We value the importance of our role in national
development endeavor and step-up for commitment.
We abide by the law of Ethiopia and other countries in
which we do business. We care about society’s welfare
and the environment.
-Customer Satisfaction
We strive to excel in our business and satisfy our
customers.
-Quality Service
We are committed to offer quality services to our
customers’ and aspire to be branded with quality in
the minds of our customers and the general public.

37. -Innovation
We encourage new ideas that can improve customers’
experience and the bank’s performance.
-Teamwork
We recognize the importance of teamwork for our
success. We respect diversity of viewpoints.
-Integrity
We are committed to the highest ideal of honor and
integrity.
-Employees
We recognize our employees as valuable organizational
resources
-Public Confidence
We understand that the sustainability of our business
depends on our ability to maintain and build up the
public’s confidence.

38.  Account Opening (Saving and Current Account)
 Deposit (Cash/Negotiable instruments)
 Payment
 Cheque clearance
 Money transfer (FCY/LCY)
 Local Drafts
 Cashier Payment Order (CPO)
 CBE RELIABLE VISA CARD
 POINT OF SALE (POS)
 INTERNET BANKING
 MOBILE BANKING
 DOCUMENTARY CREDIT (L/C)
 DOCUMENTARY COLLECTION
 ADVANCE PAYMENT

39.  CONSIGNMENT BASIS PAYMENT
 GUARANTEE
 FRANCO VALUTA LICENSE (PERMIT)
 SMALL EXPORT ITEMS LICENSE (PERMIT)
 OVERDRAFT
 MERCHANDISE LOAN FACILITY
 PRE-SHIPMENT EXPORT CREDIT FACILITY
 REVOLVING EXPORT CREDIT FACILITY
 SPECIAL TRUCK LOAN FINANCING
 SHORT TERM LOAN
 MEDIUM AND LONG TERM LOANS
 AGRICULTURAL INPUT LOAN
 AGRICULTURAL INVESTMENT LOAN
 COFFEE FARMING TERM LOAN FINANCING
 MICRO –FINANCE INSTITUTION’S LOAN

40. In addition to the variety of products and services
suggested
 They provide indoor camera at every branch to
customers for opening both savings and current
accounts for cost minimizing and security (Know Your
Customer).
 The formats of deposit, withdrawal and transfer from
accounts are all in one format for easy accesses to their
customers.
 Telecom companies offer money transaction services by
mobile phones without maintaining a bank account i.e.
M-PESA.
 Agent banking provides in Kenya as an option for
customers to get banking services when the branch is
not available or closed.

41. Personal Current Account and Check Plus
Account
Ufansi Binafsi account / SME account
Busara savings account /savings for special
occasion account
FCB Labbeyk Account / savings for Hajj
KCB students plus /FCB Students/ Account
KCB easy pay loan /Equity Bank Flexi-Salo

42.  Equity Bank Equiloan /FCB check off facility
 Salary Advance
 KCB Grace loan / FCB Lulu Advantage
 KCB SME Loan /FCB SME Finance/ Equity Bank SME
Loan
 KCB Masomo Loan / Elimika Na FCB
 School Tuition Account
 FCB Boresha Mifugo

43.  The two countries are in economic progress,
Ethiopia register 11 percent GDP growth rate and
Kenya register 4.6 percent GDP growth rate in
2012.
 There are 44 banks in Kenya and only 18 banks are
operating in Ethiopia.
 In 2012 fiscal year 111 new branches opened in
Kenya and the total number of branch reached
1272 in Kenya and 319 new branches opened in
Ethiopia and the total branches reached 1289.
 The Kenyan telecom companies’ experience of
financial product will help the customers to
transact with mobile phones without maintaining
bank accounts.

44.  Most banking products offered by the above
mentioned Kenyan Commercial Banks are similar to
each other and also with CBE products.
 The previous chapter suggests the different
products offered by Kenyan Commercial Banks but
not provided by CBE.
 These products can be tailored into the market,
legal, technological and cultural conditions of
Ethiopia.

45.  The suggested products must be analyzed further
and implemented immediately before others will
take the leading to introduce these products.
 Ethio-telecom and CBE must start working together
in implementing technological aided financial
products to the society.
 CBE must periodically review the forms used for
transactions of customers account and money
transfer.
 The software i.e. TEMENOUS must be used fully in
operation for easy convenience to customers.

46.  To open both savings and current accounts
Commercial Bank of Ethiopia must avails indoor
camera at every branch like KCB and Equity Bank.
 The formats of deposit, withdrawal and transfer from
accounts of CBE must become one format for easy
accesses to customers like KCB and FCB format.
 In agreement with Ethio telecom CBE must take the
leading role for preparing a detail procedures and
legal terms and conditions for introducing money
transactions by mobile phones without maintaining a
bank account like M-PESA in Kenya.
 Further benchmarking must be taken from these
Kenyan Commercial Banks products and telecom
services.

47.  This project is not final and ultimate for comparing
banking products of Kenyan commercial banks with
CBE products and to implement the suggested
products.
 Further studies and benchmarking must be
undertake from other Kenyan and other countries
Commercial Banks in the future for adopting best
practices, helps CBE to become a World Class
Commercial Bank and also to the financial sector all
in all in Ethiopia.