KCB Group has regained its position as East and Central Africa’s largest bank by asset value after recording strong growth in customer deposits and lending in the first half of the year.
The lender’s total assets rose 16.8 per cent to Sh2.3 trillion in the six months to June, consolidating its position at the top of the region’s banking industry.
This is higher than the Sh2.04 trillion reported by Equity Bank in the first three months of the year, compared with KCB’s Sh1.96 trillion during the same period.
Equity Bank is expected to report its half-year results.
The expansion was supported by a 15.1 per cent increase in customer deposits to Sh1.7 trillion and a 14.2 per cent rise in gross loans to Sh1.3 trillion.
The growth in lending was driven by increased business from new customers and deeper relationships with existing clients across the retail, small and medium-sized enterprises (SMEs) and corporate segments.
The stronger balance sheet was matched by improved profitability, with KCB Group reporting a 20.8 per cent increase in net profit to Sh49.3 billion. The growth was attributed to stronger income generation and disciplined cost management.
Group total income rose 9.5 per cent to Sh108.1 billion, with non-funded income increasing 15.4 per cent to Sh34.1 billion. Funded income grew seven per cent to Sh74 billion.
The group’s regional subsidiaries continued to make a significant contribution, accounting for 27.7 per cent of profit before tax and 31.1 per cent of the group’s total balance sheet.
KCB’s non-banking businesses also posted strong growth. KCB Investment Bank’s profit before tax surged 226.6 per cent to Sh503.2 million, supported by increased advisory mandates and capital markets transactions. KCB Corporate Trustee Services recorded a 79.8 per cent rise in profit before tax to Sh142.5 million, while KCB Bancassurance Intermediary posted Sh335.4 million.
Asset quality also improved during the period. Gross non-performing loans declined by Sh17.3 billion to Sh203.8 billion, from Sh221.1 billion a year earlier. This pushed the group’s non-performing loan ratio down to 15.1 per cent from 18.7 per cent, reflecting stronger recoveries and tighter credit risk management.
The group’s loan-to-deposit ratio improved to 78.8 per cent from 79.5 per cent, while return on assets remained at 3.3 per cent.
Return on equity stood at 21.1 per cent, with shareholders’ equity rising 16.3 per cent to Sh357 billion.
The strong earnings prompted the board to recommend an interim dividend of Sh3 per share, a 50 per cent increase from the Sh2 paid in the previous year. The payout will amount to Sh9.64 billion.
KCB Group chief executive Paul Russo said the results reflected the resilience of the bank’s diversified business model and the confidence customers continued to place in the institution.
“Our strong half-year performance reflects the resilience of KCB Group’s diversified business model, the strength of our regional footprint, and the confidence our customers continue to place in us,” Russo said.
Chairman Joseph Kinyua attributed the performance to disciplined execution of the group’s long-term strategy, effective governance and prudent risk management.
During the period, KCB expanded its digital and financial inclusion initiatives, including the launch of the Pata Kwako campaign, which introduced mortgage financing for underserved borrowers. It also partnered with the Kenya Defence Forces to provide dedicated mortgages at rates starting from four per cent.
In Tanzania, KCB’s Mapato Sukuk Islamic bond attracted strong investor demand, raising TZS30.24 billion against a target of TZS10 billion. In Kenya, the bank introduced a flat Sh20 fee for PesaLink transfers, while transactions of up to Sh1,000 were made free.
KCB also increased its focus on sustainable finance, reporting Sh48.8 billion in green financing in its 2025 Sustainability Report. It partnered with Nandi and Machakos counties to solarise public health facilities and launched Bid Express, allowing customers to obtain unsecured bid bonds digitally.
The group’s strong performance comes as it continues to strengthen its regional footprint, with BPR Bank Rwanda and MTN MoMo Rwanda launching MoFaya, a digital lending and savings platform.
KCB’s capital position remained strong, with its core capital ratio at 18.6 per cent against a regulatory minimum of 10.5 per cent, while total capital stood at 21.6 per cent against the required 14.5 per cent.
The group was also recognised during the period, being named Kenya’s Best Bank by Euromoney and Best Banking Group by World Finance, while featuring among the Financial Times’ Africa’s Fastest Growing Companies 2026.
