KCB Group has reported a 20.8% increase in profit before tax for the first half of 2026, reaching Ksh49.3 billion. This growth was driven by expanded lending, deposit increases, and enhanced asset quality.

Financial Highlights

  • The group’s balance sheet grew by 16.8% to Ksh2.3 trillion, solidifying its status as one of East Africa’s largest banking institutions.
  • Customer deposits rose 15.1% to Ksh1.7 trillion, while gross loans increased by 14.2% to Ksh1.3 trillion.
  • Interim dividend was raised by 50% to Ksh3.00 per share, totaling Ksh9.64 billion in payouts.

Business Segments and Income

KCB's income climbed 9.5% to Ksh108.1 billion, with non-funded income, including fees and commissions, up 15.4% to Ksh34.1 billion. Funded income grew by 7% to Ksh74 billion.

Regional subsidiaries contributed significantly, accounting for 27.7% of group profit before tax and holding 31.1% of total assets. Non-banking units also showed strong performance:

  • KCB Investment Bank’s profit before tax surged 226.6% to Ksh503.2 million.
  • KCB Corporate Trustee Services profits rose 79.8% to Ksh142.5 million.
  • KCB Bancassurance contributed Ksh335.4 million.

Improved Asset Quality

The bank saw a notable reduction in non-performing loans, which fell by Ksh17.3 billion to Ksh203.8 billion. The non-performing loan ratio improved from 18.7% to 15.1%, reflecting effective recoveries and tighter credit risk controls.

Key ratios include a loan-to-deposit ratio of 78.8% and a return on equity of 21.1%. Shareholders’ equity increased by 16.3% to Ksh357 billion. Capital buffers remain strong with a core capital ratio of 18.6% and total capital ratio of 21.6%, both exceeding regulatory requirements.

Leadership Remarks and Market Position

Group CEO Paul Russo attributed the performance to the bank’s diversified business model and regional presence, emphasizing ongoing investments in digital banking and support for customers.

Group Chairman Joseph Kinyua highlighted disciplined execution and strong governance as key drivers of the results.

KCB’s results were announced alongside Co-operative Bank’s record half-year performance, where Co-op’s profit before tax grew 17.3% to Ksh23.1 billion. Despite this, KCB’s balance sheet remains more than double that of Co-op Bank.