Co-operative Bank Kenya has announced a record profit before tax of KSh23.1 billion for the first half of 2026, marking a 17.3% increase compared to the same period last year. This performance reflects the bank's strongest half-year results to date.

The lender's profit after tax surged 28% to KSh18 billion from KSh14.1 billion in H1 2025. The results build on a solid first quarter where profit before tax rose 18.1% to KSh11.37 billion.

Key Drivers of Growth

  • Net interest income increased by 13% to KSh33.2 billion.
  • Operating income grew 12.5% to KSh48.9 billion.
  • Total assets expanded 7.1% to KSh869.5 billion.
  • Customer deposits rose 11.2% to KSh623.2 billion.
  • Net loans and advances climbed 18.1% to KSh462.2 billion.

The bank attributed its success to the ongoing implementation of its 2025-2029 Good to Great Strategy and Soaring Eagle transformation agenda. Group Managing Director and CEO Gideon Muriuki highlighted the role of a robust digital presence, universal banking model, and extensive physical network in driving results.

Improved Asset Quality and Cost Management

Co-operative Bank Kenya achieved a significant drop in its non-performing loan ratio, which fell to 13.9% from 17.2% in the prior year period. Loan-loss coverage under IFRS improved to 80.7%, while the cost of risk declined to 1.8%. Operating expenses grew by 9.2%, slower than income growth, resulting in a cost-to-income ratio of 46% before provisions.

Digital and Agency Banking Expansion

More than 90% of transactions were conducted through digital channels, including mobile, internet, and USSD banking. The agency banking network also grew, with deposits via Co-op Kwa Jirani agents rising 8.7% to KSh92.5 billion. The bank now serves over 10 million customers through 223 branches, 609 ATMs and cash deposit machines, and more than 16,000 agency outlets nationwide.

Supporting MSMEs and Youth Entrepreneurs

The bank continues to back small and medium enterprises (MSMEs), disbursing KSh40.4 billion in e-credit and serving over 268,000 MSMEs with tailored packages. MSMEs represent 16.5% of the loan book and 23.1% of customer deposits. Lending to youth entrepreneurs also grew, with over KSh27 billion disbursed to more than 500,000 young clients by June 2026.

Subsidiary Contributions and Outlook

Subsidiaries Kingdom Bank and Co-optrust Investment Services posted profit before tax increases of 77.8% and 77.5%, respectively. The strong half-year performance cements Co-operative Bank Kenya’s position among the country’s top lenders and sets the stage for continued lending, investments, and expansion in the latter half of 2026.

The bank remains focused on enhancing digital services, supporting business growth, and advancing financial inclusion across Kenya.