KCB Group PLC has reported strong growth in shareholder value, capital buffers, and earnings during the first quarter of 2026, as the lender continued to expand its regional footprint despite economic headwinds.
The Group posted a pre-tax profit of KShs. 24.4 billion for the quarter ending March 31, 2026, representing a 15.3 percent increase compared to KShs. 21.2 billion recorded during a similar period last year.
KCB said the performance reflected the resilience of its diversified business model amid a difficult operating environment.
The lender also continued delivering value for shareholders, posting a Return on Equity of 21.5 percent during the quarter.
Total equity attributable to Group shareholders grew by 18.5 percent from KShs. 297.1 billion to KShs. 352.2 billion.
Earnings per Share increased to KShs. 22.18 from KShs. 20.03 recorded during the same period last year, reflecting continued growth in shareholder value.
KCB maintained strong capital buffers, with all banking subsidiaries remaining compliant with their respective local regulatory capital requirements.
According to the Group’s financial results, core capital as a proportion of total risk-weighted assets stood at 18.2 percent against the statutory minimum requirement of 10.5 percent.
Total capital to risk-weighted assets stood at 21.6 percent compared to the regulatory minimum of 14.5 percent.
The Group also maintained a strong liquidity ratio of 51.1 percent, positioning the lender to effectively respond to emerging opportunities and potential risks.
KCB said the improved financial performance was supported by an 8.5 percent growth in total operating income to KShs. 53.6 billion, largely driven by growth in interest-bearing assets that offset declining Net Interest Margins.
The lender noted that sustained rate cuts by regulators across the region led to lower asset yields across all its markets during the period under review.
The Group’s balance sheet expanded by 10.8 percent to KShs. 2.3 trillion on the back of increased customer activity across key business segments.
Customer deposits also rose by 15.7 percent during the quarter.
Excluding the impact of National Bank of Kenya (NBK), which the Group divested from in May 2025, year-on-year growth in pre-tax profit and operating income stood at 17 percent and 16 percent respectively.
Subsidiaries outside KCB Bank Kenya maintained strong performance, contributing 29.5 percent of overall Group earnings and accounting for 31.5 percent of the Group balance sheet.
KCB Bancassurance Intermediary posted KShs. 209 million in profit before tax, KCB Investment Bank recorded KShs. 274 million, while KCB Asset Management contributed KShs. 64 million.
KCB Group Chief Executive Officer Paul Russo said the lender remained focused on disciplined execution, digital transformation, and sustainable growth.
“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 results released by the Group show that total operating costs increased by 7.3 percent to KShs. 24.3 billion due to higher workforce expenses, scaled technology investments, and business expansion costs.
Non-funded income grew by 8.3 percent to KShs. 17 billion supported by increased digital loan disbursements and higher foreign exchange income.
KCB said the Group continued supporting businesses and households with credit facilities aimed at driving trade, investment, and working capital needs.
On asset quality, the lender recorded improvements across all subsidiaries, reducing the Non-Performing Loan ratio to 16.6 percent from 19.3 percent.
The stock of non-performing loans declined to KShs. 217.8 billion from KShs. 233.3 billion following aggressive recovery efforts and a 9.1 percent expansion of the gross loan book.
The Group also maintained prudent provisioning amid prevailing economic risks, setting aside KShs. 4.9 billion as provisions against potential loan losses.
KCB’s balance sheet growth was further supported by customer deposits, which increased by 16 percent to KShs. 1.7 trillion following sustained onboarding of new-to-bank customers across both corporate and retail businesses.
Meanwhile, the gross loan book rose to KShs. 1.32 trillion from KShs. 1.21 trillion recorded during the same period last year.
KCB Group Chairman Dr. Joseph Kinyua said the lender remained confident in its long-term strategy and its ability to navigate changing market conditions.
“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.
Among the latest corporate developments, KCB Foundation signed a partnership agreement with UNHCR in January 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 secured approval for a $96.9 million financing package equivalent to KShs. 12.5 billion from the Green Climate Fund and co-financing from the Bank to accelerate green projects targeting MSMEs, farmers, and vulnerable communities.
The lender also sponsored the 2026 WRC Safari Rally, injecting KShs. 227 million into the international motorsport competition.
Through a nationwide consumer promotion linked to the rally sponsorship, one customer won a one-bedroom apartment at Tatu City courtesy of Unity Homes.
In April, KCB Bank Kenya signed an agreement with the Ministry of Education aimed at promoting sustainable learning institutions through concessional financing for clean energy technologies in schools.
KCB Group also continued receiving global recognition, including being named Best Banking Group at the World Finance Banking Awards 2026.
Additionally, KCB Bank Kenya introduced a KShs. 20 flat fee on Pesalink transfers, while transfers below KShs. 1,000 remain free under the banking industry’s “Tuma Direct na 20/-” campaign aimed at making real-time payments more affordable and convenient for individuals and MSMEs.
