Co-op Bank unveils holding company shift under Gideon Muriuki

Co-operative Bank Group (Co-op Bank), led by Kenyan banking executive Gideon Muriuki, has announced a major corporate restructuring alongside a record financial performance, signaling a new phase of growth and expansion.

The lender reported a net profit of Ksh29.75 billion ($229.57 million) for the year ended December 31, 2025, marking a 16.9% increase from Ksh25.46 billion ($196.46 million) recorded in 2024. The strong performance, driven by higher income and improved efficiency, reflects gains from its “Soaring Eagle” Transformation Agenda and the broader 2025–2029 “Good to Great” strategy.

Co-op Bank’s asset growth and regional expansion

Co-op Bank continued to strengthen its balance sheet, with total assets rising 11.32% to Ksh827.4 billion ($6.39 billion), up from Ksh743.3 billion ($5.75 billion) a year earlier, reinforcing its position among East Africa’s largest financial institutions.

The group operates a diversified structure with subsidiaries including Kingdom Bank Ltd, Co-optrust Investment Services Ltd, Co-op Bancassurance Intermediary Ltd, Kingdom Securities Ltd, and Co-op Bank of South Sudan. It also holds a 24.8% stake in CIC Insurance Group and a 25% interest in Co-op Bank Fleet Africa Leasing Ltd, a joint venture with South Africa’s Super Group.

Its footprint spans 217 branches in Kenya, six in South Sudan, 616 ATMs and cash deposit machines, and more than 16,000 agency banking outlets under the Co-op Kwa Jirani network, supported by linkages to over 15 million members of Africa’s largest cooperative movement.

Dividend payout rises as returns strengthen

On the back of its record earnings, the board proposed a final dividend of Ksh1.50 ($0.0116) per share, bringing the total dividend for the year to Ksh2.50 ($0.0193) per share, up 67 percent from Ksh1.50 ($0.0116) paid in 2024.

Gideon Muriuki, Group Managing Director and CEO of The Co-operative Bank of Kenya, who owns a 2% stake in the leading financial services group, is poised to receive a $2.26 million dividend. The proposed payout is subject to shareholder approval at the Annual General Meeting scheduled for May 2026.

Co-op Bank adopts holding company structure

As part of its strategic evolution, the bank has approved the transition to a Non-Operating Holding Company (NOHC) model, subject to regulatory and shareholder approvals.

Under the new structure, Co-operative Bank of Kenya Ltd will be renamed Co-opBank Group Plc and will remain the listed entity on the Nairobi Securities Exchange, while a new subsidiary, Co-op Bank Kenya Ltd, will be established to house the core banking operations.

The move is expected to enhance governance, improve operational efficiency, and create a scalable platform for expansion into diversified financial services and regional markets, reinforcing growth ambitions under Muriuki’s leadership.