KCB Group posts record $530 million profit as Kenyan unit leads earnings growth

KCB Group Plc, East Africa’s largest banking group by assets, reported record earnings for the 2025 financial year, underscoring the strength of its core banking business even as foreign-exchange income softened.

The Nairobi-based lender said profit after tax rose to Ksh68.4 billion ($530 million) in 2025, up from Ksh61.8 billion ($478.2 million) a year earlier, according to results released by the group. The 11 percent increase was supported by higher interest income and tighter cost control across its regional operations.

Group revenue remained steady despite weaker non-funded income, mainly linked to lower foreign-exchange earnings. Management said disciplined spending and stable lending activity helped offset those pressures.

Kenyan subsidiary drives majority of profit

Most of the group’s earnings came from its flagship unit, KCB Bank Kenya, which reported Ksh48.5 billion ($375.3 million) in profit during the year. Operations outside Kenya also contributed meaningfully to the result. 

Profit from regional subsidiaries rose 4 percent to Ksh20.3 billion ($157.1 million), supported by improved performance in Burundi, Tanzania and Uganda, as well as growth in the group’s non-banking businesses.

Those gains helped cushion the impact of KCB’s decision to exit National Bank of Kenya after completing the sale of its entire stake to Access Bank. Total income for the year reached Ksh214 billion ($1.65 billion), a 4 percent increase from the previous year. Net interest income rose 8 percent, helped by lower interest expenses and steady demand for credit.

Mobile lending drives KCB fee growth

Fees linked to lending also increased, climbing 18 percent as digital borrowing expanded across the bank’s mobile platforms. During the year, customers borrowed Ksh544 billion ($4.2 billion) through mobile loans, a 30 percent increase from 2024. On average, the bank disbursed about Ksh1.5 billion ($11.6 million) in digital loans each day.

The group also reported a 54 percent rise in other income, helped by a Ksh3.18 billion ($24.6 million) gain from the sale of National Bank of Kenya. Operating costs declined 3 percent following the divestiture and broader efficiency measures across the group. As a result, KCB’s cost-to-income ratio improved to 42.3 percent in 2025 from 45.4 percent the previous year.

Regional expansion and digital investments continue

Beyond its earnings growth, KCB continued to expand its regional presence and invest in technology. The bank operates in several African markets including the Democratic Republic of Congo, Tanzania, Rwanda, South Sudan, Uganda and Burundi.

During the year, it acquired a 75 percent stake in Riverbank Solutions and also purchased a minority stake in Pesapal Ltd as it deepens its payments and digital services offering.

KCB also introduced a unified mobile banking app that allows customers to open accounts and wallets digitally, access money market funds and use integrated mini-apps. Digital adoption accelerated, with 99 percent of transactions by volume completed outside branches. Even so, the lender expanded its physical network, opening 11 branches in key growth areas in the region.

Assets and shareholder returns rise

KCB’s balance sheet also expanded during the year. Total assets rose 9 percent to Ksh2.15 trillion ($16.6 billion) as of Dec. 31, 2025, up from Ksh1.96 trillion ($15.2 billion) a year earlier. Shareholders’ equity increased to Ksh331.5 billion ($2.56 billion), compared with Ksh274.9 billion ($2.12 billion) in 2024.

Retained earnings climbed to Ksh290.2 billion ($2.24 billion) from Ksh243.38 billion ($1.88 billion). Thanks to the impressive results, the board recommended a final dividend of Ksh3 ($0.02) per share. The payout is scheduled for May 22, 2026, for shareholders on the register at the close of business on April 2, 2026, subject to shareholder approval.