Kenya’s banking sector has delivered another strong performance in the first nine months of 2025, with the country’s top 10 lenders collectively posting combined net profits of KSh196.3 billion, up from KSh173.2 billion in the same period last year.
Eight banks record double-digit growth
Despite persistent worries over elevated public debt and occasional global headwinds, eight of the ten largest banks recorded year-on-year profit growth – in several cases by double-digit percentages – as lower interest rates and a rebound in private-sector credit fuelled earnings.
Sidian Bank leads with 470% surge
The undisputed standout was tier-three lender Sidian Bank, which stunned analysts with a 470% leap in net profit to KSh1.4 billion from a low base of KSh246 million a year earlier.
The surge was powered by a near-doubling of net interest income and a sharp rise in fees and commissions as the bank aggressively expanded its small and medium-sized enterprises and digital lending books.
Equity retains most profitable crown
Equity Bank Kenya once again dominated in absolute terms, growing net profit 32% to KSh54 billion and cementing its position as the country’s most profitable lender.
The group’s regional subsidiaries in the Democratic Republic of Congo, Rwanda, Tanzania and Uganda continued to contribute strongly, while lower funding costs and resilient loan growth at home added further momentum. Equity has already earned more in nine months than it did for the whole of 2024.
KCB edges up 3%
KCB Bank Kenya, the largest bank by assets, saw net profit edge up 3% to KSh46 billion, supported by a 9% rise in customer deposits and steady expansion across its East African network.
The modest growth rate reflected higher operating expenses and a cautious provisioning stance amid lingering public-sector payment delays.
Co-op Bank, Absa and NCBA shine
Co-operative Bank of Kenya lifted net profit 12% to KSh21.6 billion, buoyed by a 19% jump in net interest income and continued success with its mobile and agency banking channels.
Absa Bank Kenya posted a 15% increase to KSh17 billion, helped by disciplined cost management and a significant drop in loan-loss provisions as asset quality improved.
NCBA Bank followed closely with an 8.5% rise to KSh16 billion, celebrating the milestone of crossing KSh1 trillion in cumulative digital loan disbursements since launching its platform. I&M Bank rounded out the stronger performers with a 26% gain to KSh12.7 billion, driven by regional growth and tight expense control, while Diamond Trust Bank Kenya recorded a 12% rise to KSh8.4 billion on the back of higher net interest income and recovering corporate lending.
Stanbic and Standard Chartered post declines
The two banks that bucked the upward trend were Stanbic Bank Kenya and Standard Chartered Bank Kenya. Stanbic saw net profit fall 7.5% to KSh9.4 billion, weighed down by weaker trading income and foreign-exchange earnings in a relatively stable shilling environment.
Standard Chartered suffered the steepest decline, down 38% to KSh9.8 billion, primarily due to a KSh4.8 billion one-off charge related to a long-running staff pension dispute.
Improving economy provides tailwind
The favourable results came against an improving macroeconomic backdrop. Kenya’s economy expanded by an estimated 5.2% in the first half of 2025, with the Central Bank decision to cut its benchmark rate by 100 basis points to 11.25% in August spurring fresh credit demand from households and businesses.
Annual inflation eased to 3.8% by September, well within the official target band, giving consumers more disposable income and reducing pressure on borrowers.
Private-sector credit accelerates
Private-sector credit growth accelerated to 14.6% year-on-year by September, the fastest pace in over two years, according to Central Bank data. Digital channels continued their rapid rise, with mobile-money transaction values hitting record highs and banks reporting double-digit growth in fee income from agency and internet banking.
Optimism for final quarter
Banking chiefs and analysts struck an optimistic tone for the final quarter. “The combination of lower rates, stable currency and recovering economic activity sets the stage for a strong finish to the year,” one Nairobi-based banking analyst said. Most institutions have signalled higher dividend payouts and continued investment in technology and financial inclusion programmes.
Risks remain on the horizon
Still, caution remains. Public-sector arrears, though declining, continue to tie up billions of shillings in contractors’ payments, while climate-related risks to the agricultural portfolio linger after uneven rains in parts of the country.
Overall, however, Kenya’s leading banks have demonstrated once again that they can deliver solid returns even in a testing environment. With total sector assets now comfortably above KSh7 trillion and capital buffers among the strongest in sub-Saharan Africa, the industry looks well equipped to support the country’s growth ambitions heading into 2026.
