- Industry records strong profits amid high cost of living and global uncertainty.
- Capital adequacy ratio stands at 18.4%, above the statutory minimum of 14.5%.
- Non-performing loans drop to 13.5% from 14.9% in 2023.
- KCB leads with KSh 61.8B profit, followed by Equity at KSh 48.8B.
- Digital and agency banking drive growth in customer reach and efficiency.
Kenya’s banking sector delivered record earnings in 2024, reflecting resilience even as households and businesses struggled with economic headwinds. The Central Bank of Kenya’s Financial Sector Stability Report highlighted that banks maintained solid capital buffers and improved asset quality.
The capital adequacy ratio stood at 18.4 per cent, well above the statutory 14.5 per cent requirement, ensuring a strong cushion against shocks. Non-performing loans dropped to 13.5 per cent from 14.9 per cent in 2023, helped by recovery efforts and loan restructuring.
KCB Group led the industry with a profit after tax of KSh 61.8 billion, a 64.9 per cent surge from the previous year. Equity Bank posted KSh 48.8 billion, reinforcing its regional dominance.
Other lenders also recorded strong results: Co-operative Bank: KSh 34.8 billion profit before tax, up 7.5%. Absa Bank Kenya: KSh 20.9 billion net profit, supported by 14% revenue growth. Standard Chartered Bank: KSh 20.1 billion net profit. NCBA Group: KSh 21.9 billion net profit, up 1.9%. Stanbic Bank: KSh 13.71 billion net profit.
The rise of digital and agency banking remained central to growth. Millions of Kenyans now prefer mobile transactions over traditional branches, allowing banks to reduce costs while expanding reach to rural and informal markets. Total assets grew to over KSh 7.5 trillion, strengthening the sector’s foundation.
Despite strong earnings, challenges persist. Heavy exposure to government securities leaves banks vulnerable to fiscal pressures, while global economic slowdowns could affect investor inflows. Regulators pledged to step up stress testing to protect stability.
