KCB Group H1 Profit Before Tax Rises 21% to KSh49.3 Billion

Strong income growth, higher lending and improved asset quality support KCB’s first-half performance as the Group increases its interim dividend by 50%.

KCB Group has reported a strong financial performance for the first half of 2026, with profit before tax rising 20.8 per cent to KSh49.3 billion, supported by income growth, disciplined cost management and continued expansion across its banking and non-banking businesses.

The Group’s balance sheet also expanded during the period, with total assets increasing 16.8 per cent to KSh2.3 trillion.

The performance has enabled the KCB Group Board to recommend an interim dividend of KSh3.00 per share, up 50 per cent from KSh2.00 per share paid in the previous year. The dividend translates to a total payout of KSh9.64 billion.

Income growth supports profitability

KCB Group’s total income increased by 9.5 per cent to KSh108.1 billion, reflecting growth across its diversified business lines.

Non-funded income rose 15.4 per cent to KSh34.1 billion, while funded income increased 7 per cent to KSh74 billion.

The Group’s performance comes against a challenging operating environment, with KCB pointing to the strength of its diversified business model and regional footprint as key contributors to its resilience.

“Our strong half-year performance reflects the resilience of KCB Group’s diversified business model, the strength of our regional footprint, and the confidence our customers continue to place in us,” said KCB Group CEO Paul Russo.

He added that the Group remains focused on supporting businesses and households, accelerating digital transformation and creating long-term value for shareholders and communities.

Loans and deposits drive balance sheet growth

Customer deposits increased by 15.1 per cent to KSh1.7 trillion, providing a strong funding base for the Group’s lending activities.

Gross loans grew by 14.2 per cent to KSh1.3 trillion, driven by new customer acquisition and increased lending across retail, SME and corporate segments.

The growth was accompanied by an improvement in asset quality. KCB’s gross non-performing loans declined by KSh17.3 billion to KSh203.8 billion from KSh221.1 billion a year earlier.

As a result, the Group’s NPL ratio improved to 15.1 per cent, compared with 18.7 per cent previously, reflecting increased recoveries, rehabilitation of distressed facilities and strengthened credit risk management.

The loan-to-deposit ratio also improved to 78.8 per cent from 79.5 per cent, while return on assets remained stable at 3.3 per cent.

Regional businesses strengthen contribution

KCB’s regional operations continued to provide a significant contribution to Group performance.

Banking subsidiaries outside KCB Bank Kenya contributed 27.7 per cent of Group profit before tax and accounted for 31.1 per cent of the total balance sheet.

The performance highlights the growing importance of KCB’s regional footprint as the Group seeks to diversify its earnings across East Africa.

Its non-banking businesses also recorded notable growth.

KCB Investment Bank posted a 226.6 per cent increase in profit before tax to KSh503.2 million, driven by increased advisory mandates and capital markets activity.

KCB Corporate Trustee Services increased profit before tax by 79.8 per cent to KSh142.5 million, supported by growth in trustee and fiduciary services, while KCB Bancassurance Intermediary Limited delivered KSh335.4 million in profit before tax.

KCB Group H1 Profit Before Tax Rises 21% to KSh49.3 Billion

Strong capital position supports future growth

KCB Group’s shareholders’ equity increased by 16.3 per cent to KSh357 billion, up from KSh306.8 billion a year earlier.

Return on equity stood at 21.1 per cent, reflecting continued earnings growth and capital retention.

The Group also maintained strong capital buffers, with its Core Capital to Risk-Weighted Assets Ratio at 18.6 per cent, against a regulatory minimum of 10.5 per cent.

Total Capital to Risk-Weighted Assets stood at 21.6 per cent, well above the regulatory threshold of 14.5 per cent.

The strong capital position provides room for KCB to support future lending, absorb potential shocks and continue its progressive dividend policy.

KCB Group Chairman Dr. Joseph Kinyua said the performance reflected disciplined execution of the Group’s long-term strategy and a focus on prudent risk management and innovation.

Digital and financial inclusion remain priorities

During the first half of the year, KCB continued to invest in initiatives aimed at expanding access to financial services and simplifying how customers interact with the bank.

The Group introduced a flat KSh20 fee for PesaLink transfers, while transactions of up to KSh1,000 were made free, as part of efforts to encourage affordable digital payments.

KCB also launched Bid Express, a digital platform allowing customers to request and generate unsecured bid bonds remotely without visiting a branch.

In Rwanda, BPR Bank and MTN MoMo Rwanda launched MoFaya, a digital savings and lending solution that enables eligible customers to access instant loans of up to Rwf2 million and save directly through Mobile Money wallets.

Expanding access to affordable housing

KCB also continued to target the housing finance gap through its Pata Kwako campaign.

The initiative includes a Kenya Mortgage Guarantee Trust-backed MSME mortgage solution offering 15-year terms at 9.9 per cent per annum, targeting gig economy workers and SMEs with irregular income streams.

The bank also partnered with the Kenya Defence Forces to provide dedicated mortgage schemes to members of the disciplined forces, with rates starting from 4 per cent per annum.

The initiatives form part of KCB’s broader efforts to expand access to homeownership among customer segments that may traditionally face challenges accessing mortgage finance.

Green finance gains momentum

Sustainable finance has also become an increasingly important part of KCB’s business strategy.

The Group’s 2025 Sustainability Report highlighted KSh48.8 billion in green financing supporting projects focused on environmental sustainability.

KCB Foundation also partnered with Hivos to launch the Tujenge Pamoja Programme, which aims to accelerate Kenya’s transition towards a circular and inclusive green economy.

During the period, KCB expanded its clean-energy initiatives through partnerships with Nandi and Machakos counties to solarise public health facilities.

These initiatives demonstrate how financial institutions can support climate action while creating financing opportunities in emerging areas such as renewable energy and clean technology.

Creating value beyond financial returns

KCB’s first-half performance comes alongside continued efforts to expand its regional footprint, strengthen digital banking and finance economic activity.

The Group was also recognised through several industry awards, including being named Kenya’s Best Bank by Euromoney and Best Banking Group at the World Finance Banking Awards. It was also featured among the Financial Times’ Africa’s Fastest Growing Companies 2026.

With a larger balance sheet, stronger lending activity, improved asset quality and a higher interim dividend, KCB’s H1 2026 performance underscores the Group’s focus on balancing growth with financial resilience.

The increased dividend also signals the Board’s commitment to returning value to shareholders while maintaining the capital strength required to finance businesses, households and investment opportunities across the markets where KCB operates.