KCB Group PLC recorded KShs. 24.4 billion in pre-tax profit for the first quarter ending March 31, 2026, representing a 15.3% growth, compared to KShs. 21.2 billion a similar period last year, underscoring the resilience of the Group’s diversified business model.
The improved performance, amid a difficult operating environment, was driven by an 8.5% growth in total operating income to KShs. 53.6 billion which mostly streamed from growth in interest bearing assets offsetting decline in Net Interest Margin. The sustained rate cuts by regulators in the region saw a drop in asset yield across all our markets in the period under review.
The Group’s balance sheet stood at KShs. 2.3 trillion, expanding 10.8% on the back of increased customer activity across key business segments which pushed our customer deposits upwards by 15.7%
Excluding the impact of NBK which the Group divested from in May 2025, year on year growth pre-tax profit and operating income stood at 17% and 16% respectively.
Subsidiaries excluding KCB Bank Kenya maintained strong performance, with their profit before tax making up 29.5%of the overall Group earnings and 31.5% of the Group balance sheet. The three non-banking subsidiaries sustained their PBT contribution— KCB Bancassurance Intermediary (KShs. 209M), KCB Investment Bank (KShs. 274M) and KCB Asset Management (KShs. 64M).
Commentary: Group Chief Executive Officer, Paul Russo
“Despite the challenging operating environment, we delivered solid growth driven by disciplined execution, continued investment in digital innovation, and our unwavering commitment to providing financing which catalyzes economic transformation across the region. We continued to optimize our regional footprint and scale to best serve our customers and create sustainable shareholder value,” said KCB Group CEO, Paul Russo. “While economic activity in East Africa remained resilient, we continued to see the impact of the Middle East conflict on economies, with a likely ripple effect of depressed credit demand, increased credit risk and lower remittance receipts, and on deposits,” he added.
Financial Highlights
- Total Operating Costs grew 7.3%, to KShs. 24.3 billion on account of higher workforce expenses, scaled technology investments, and business expansion costs.
- Non-Funded Income grew 8.3% to KShs. 17 billion supported by a growth in digital loans disbursed during the period and a rise in foreign exchange income as the Group continued to support businesses and households with credit to drive trade, investment, and working capital needs.
- On asset quality, the Group recorded improvements across all subsidiaries, pushing the Non-Performing Loan (NPL) ratio downwards, benefiting from both aggressive recovery efforts and a 9.1% expansion of the gross loan book. Effectively, NPL ratio closed at 16.6 % from 19.3% while the stock of NPL closed the period at KShs.217.8 billion from KShs.233.3 billion.
- Additionally, the Group sustained its prudence in provisioning on the back of prevailing economic risks, setting aside KShs4.9 billion as provisions against potential loan losses, which increased both prudential and IFRS ratios.
- The Group’s balance sheet expansion was driven by higher customer deposits which grew 16% to KShs. 1.7 trillion attributable to sustained onboarding of new- to-bank customers for both corporate and retail businesses. The gross loan book stood at KShs.1.32 trillion, up from KShs.1.21 trillion, a similar period last year.
- The Group continued to deliver value for shareholders, posting a Return on Equity of 21.5%. Total equity attributable to Group shareholders grew by 18.5% from KShs. 297.1 billion to KShs. 352.2 billion. Earnings per Share increased to KShs 22.18, up from KShs 20.03 in the same period last year, reflecting continued growth in shareholder value.
- The Group maintained strong capital buffers with all banking subsidiaries compliant with their respective local regulatory capital requirements. Group core capital as a proportion of total risk-weighted assets stood at 18.2% against the statutory minimum of 10.5% while the total capital to risk-weighted assets was at 21.6% against a regulatory minimum of 14.5%. The Group maintains a strong liquidity ratio of 51.1%, ensuring an agile balance sheet that enables it to capitalize on emerging opportunities while effectively responding to potential risks.
Outlook: Group Chairman, Joseph Kinyua
“The Group’s strong start to the year is a clear affirmation of the effectiveness of our long-term strategy, the resilience of our regional businesses, and the discipline with which we continue to execute our priorities. We remain confident in the Group’s ability to navigate evolving market dynamics while continuing to support economic growth, regional trade, and financial inclusion across our markets. The Middle East conflict presents a significant counterforce to global growth through its impact on commodity markets, inflation expectations and financial conditions” said KCB Group Chairman, Dr. Joseph Kinyua.
Latest Corporate Developments
- In January, KCB Foundation signed a deal with UNHCR formalizing a strategic partnership aimed at advancing financial inclusion, livelihoods, and long-term socio- economic opportunities for refugees and host communities across the region.
- In March, KCB Bank Kenya received approval for a $96.9M (KShs. 12.5B) financing from the Green Climate Fund (GCF) and co-financing from the Bank,to accelerate green projects for Micro, Small and Medium Enterprises (MSMEs) and farmers and support Kenya’s most vulnerable communities.
- KCB sponsored the 2026 WRC Safari Rally in March injecting KShs. 227 million into the iconic sporting showpiece. The Bank ran a Nationwide Consumer Promotion whose grand winner won a one-bedroom apartment at Tatu City, courtesy of Unity Homes, a partner.
- In April, KCB Bank Kenya signed an agreement with the Ministry of Education to drive sustainable learning institutions. The Bank has developed a concessional loan product to ensure that the schools are able to harness clean energy technologies to provide clean, affordable, and reliable power for lighting schools.
- KCB Group continued to top global, regional and local awards scene as the bank received several accolades. Key among this is Best Banking Group at the World Finance Banking Awards, 2026.
- KCB Bank Kenya has introduced KShs. 20 Flat Fee on Pesalink, with free transfers for amounts below KShs. 1,000, enabling customers to make everyday transfers at no cost. In line with the industry’s “Tuma Direct na 20/-,” campaign, the move is aimed at making real-time payments more affordable, and convenient for individuals and MSMEs using KCB Bank’s mobile & internet banking channels.
