Kenya's local banks such as Equity Group (17% growth) recorded strong profit growth, while foreign-owned banks struggled

  • Equity Group was the most profitable bank on the list with $268M in H1 2025.
  • KCB followed closely with $250M in profits, supported by 8% YoY growth.
  • I&M Group achieved the fastest growth rate of 36%, despite a smaller base of $63 million.
  • Standard Chartered’s profits fell by 21%, highlighting the struggles of foreign banks.
  • Stanbic Holdings also declined by 9%, contrasting with local banks’ upward trend.

Kenya’s banking sector showed a sharp contrast in performance between local and foreign-owned banks in the first half of 2025. Local banks such as Equity Group, KCB, and Co-operative Bank continued to post strong profits, with Equity Group leading at $268 million, boosted by a 17% year-on-year growth. In contrast, foreign banks like Standard Chartered and Stanbic Holdings struggled, recording profit declines of 21% and 9% respectively. This divergence highlights the resilience of local banks in navigating Kenya’s economic and regulatory environment.

The data also shows that mid-tier banks like NCBA and Absa are steadily strengthening their positions, recording double-digit and high single-digit profit growth, respectively. Interestingly, I&M Group posted the fastest growth at 36%, although from a smaller profit base compared to the larger banks.

Source:

Companies’ Financial Reports, African Financials

Period:

H1 2025
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Microfinance banks in Kenya have consistently posted losses since 2016, reaching KSh -3.5B in 2024
  • Microfinance banks in Kenya recorded their last profit in 2015 (KSh 0.6B) before sliding into losses.
  • The sector’s losses deepened from KSh -0.4B in 2016 to KSh -3.5B in 2024.
  • The steepest single-year decline occurred in 2020, when losses increased by 560.8% to KSh -2.2B.
  • Even in recovery years like 2019 (KSh -0.3B) and 2021 (KSh -0.7B), the sector remained in losses.
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  • The worsening losses mirror other sector struggles, such as stagnant deposits, weak asset growth, and rising NPLs.

Kenya’s microfinance banks’ total assets over the years have ranged from KSh 57.0B to KSh 76.4B (2014–2024), standing at KSh 57.9B in 2024
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