Central Bank of Kenya head offices in NairobiThe
scale of the change is captured in the latest Central Bank of Kenya (CBK)
Bank Supervision Annual Report 2025, which shows that the number of deposit
account holders fell by 29.4 per cent, from 114.24 million in 2024 to 80.68
million last year.
The
decline sharply reversed a decade-long expansion in bank accounts.
The
number rose from 8.48 million in 2009 to 69.88 million in 2020, then jumped to 94.64 million in 2023 and 114.24 million in 2024.
The
banking regulator attributes the 2025 fall partly to consolidating financial-inclusion fund savings balances into a single custody-administered account, which aggregated customer wallet balances for reporting.
Increased
recruitment of bank staff also contributed to the change in the efficiency
ratio.
The
data coincides with a wider shift away from traditional bank accounts as the
primary savings vehicle.
A
CBK analysis of the 2024 FinAccess survey found that only 14 per cent of the
population saved through banks or microfinance banks, compared with 36 per cent
who saved through mobile money.
Mobile
banking accounted for another 17 per cent, with its popularity driven by
convenience, accessibility and trust.
“This
suggests that while the banking sector continues to accumulate deposits, an
increasing share of Kenyans are using banks less as everyday savings wallets
and more as part of a broader financial ecosystem involving mobile money,
SACCOs and other investment products,’’ the report read.
The
shift comes against a difficult economic backdrop. Kenya’s economy grew by 4.6
per cent in 2025, down slightly from 4.7 per cent in 2024, according to the
Kenya National Bureau of Statistics.
The
softer growth came as households and businesses continued to grapple with high
living and operating costs, limiting the amount of income available for
conventional savings.
Yet
the CBK report presents a paradox: the number of deposit accounts fell
sharply even as the value of deposits increased.
Customer
deposits in the banking sector rose by 11.6 per cent to Sh6.12 trillion in
December 2025, from Sh5.48 trillion a year earlier.
Total
net assets rose 10.3 per cent to Sh8.35 trillion.
“The
figures point to a banking system increasingly holding more money for a smaller
or at least more consolidated pool of accounts.”
The
Kenya Deposit Insurance Corporation (KDIC) has separately linked the sharp
reduction in accounts to the rationalisation of dormant and inactive accounts.
Data
show that banks closed about 33.8 million accounts in the year to June 2025,
reducing the total from 112.5 million to 78.7 million.
“This
clean-up is significant because dormant accounts can eventually become
unclaimed financial assets if they remain untouched for the periods prescribed
by law.”
The
annual sector supervision report shows that banking remains financially strong
despite the changes in customer behaviour.
Pre-tax
profit rose 17.7 per cent to Sh306.3 billion in 2025 from Sh260.3 billion in
2024.
Capital
and reserves increased 18.6 per cent to Sh1.4 trillion, while the average
liquidity ratio improved to 59.3 per cent from 56 per cent.
Lending
also expanded, with gross loans increasing by 6.8 per cent. However, credit
quality remains a concern.
Non-performing
loans stood at Sh696.9 billion at the end of 2025, only marginally below
Sh697.3 billion in 2024, although the NPL ratio improved from 17.1 per cent to
16 per cent.
Furthermore,
the report highlights a continuing migration towards digital banking.
The
number of ATMs fell by 61, or 2.66 per cent, to 2,228 in 2025 as banks
increasingly shifted customers towards mobile and digital channels.
Meanwhile,
microfinance banks faced greater pressure.
Their combined assets declined 4.1 per cent to Sh55.5 billion, while net advances fell 6.1 per cent to Sh29.3 billion.
The apex bank attributes the reduction partly to efforts to manage non-performing loans and increased competition from other credit providers.
