Kenya’s banking sector recorded strong profits in 2024, underlining the resilience of the industry even as households and businesses grappled with high costs of living and global financial uncertainty.
The Central Bank of Kenya’s latest Financial Sector Stability Report shows that banks maintained solid capital buffers while improving asset quality, a trend that helped deliver record earnings across major institutions.
Overall, the industry’s capital adequacy ratio stood at 18.4 percent, well above the statutory minimum of 14.5 percent, giving banks a strong cushion against potential shocks.
Non-performing loans fell to 13.5 percent from 14.9 percent in 2023, thanks to intensified recovery efforts and loan restructuring.
The strong performance was reflected in the results of the country’s top banks.
KCB Group led the pack with a profit after tax of KSh 61.8 billion, marking a remarkable 64.9 percent increase from the previous year.
Equity Bank followed closely with KSh 48.8 billion in earnings, consolidating its position as one of the region’s most profitable lenders.
Co-operative Bank posted a profit before tax of KSh 34.8 billion, up 7.5 percent, while Absa Bank Kenya reported KSh 20.9 billion in net profit, buoyed by a 14 percent rise in revenue.
Standard Chartered Bank Kenya recorded a net profit of KSh 20.1 billion, NCBA Group earned KSh 21.9 billion, a modest 1.9 percent increase, and Stanbic Bank rounded off the top tier with KSh 13.71 billion.
Collectively, the sector’s profits were supported by rising interest income, efficient cost management, and the rapid adoption of digital services.
Digital and agency banking continued to expand, with millions of Kenyans preferring mobile-based transactions over traditional branches.
This shift has helped banks cut costs while reaching more rural and informal sector customers. Total assets in the banking sector grew to over KSh 7.5 trillion, further strengthening the industry’s foundation.
However, risks remain. Many banks are heavily exposed to government securities, leaving them vulnerable to fiscal pressures.
Global economic slowdowns could also impact investor flows. Regulators have promised to step up stress testing to safeguard stability.
