KCB Group has posted a pre-tax profit of KSh24.4 billion for the first three months of 2026, reflecting a 15.3 per cent increase compared to KSh21.2 billion recorded during the same period last year.
The lender attributed the strong performance to growth across its regional subsidiaries, increased customer deposits, and continued expansion of its digital banking services despite the tough economic environment facing businesses and households across the region.
The Group’s total operating income rose by 8.5 per cent to KSh53.6 billion, largely supported by growth in interest-earning assets. However, the bank noted that falling interest rates across East Africa affected returns on lending during 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).
Speaking on the results, KCB Group Chief Executive Officer Paul Russo said the bank’s performance showed resilience despite economic pressure in the region.
“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
He added that although East Africa’s economy remained relatively stable, global tensions, especially the ongoing Middle East conflict, continued to affect markets through lower credit demand, rising financial risks and reduced remittances.
During the quarter, KCB’s operating costs increased by 7.3 per cent to KSh24.3 billion due to higher staff expenses, technology investments and business expansion activities.
At the same time, non-funded income grew by 8.3 per cent to KSh17 billion, boosted by growth in digital loans and increased foreign exchange transactions as businesses and households sought financing support.
The Group also reported improvements in loan performance across its subsidiaries, with the ratio of non-performing loans dropping from 19.3 per cent to 16.6 per cent.
KCB said aggressive loan recovery efforts and expansion of the loan book helped reduce the stock of bad loans from KSh233.3 billion to KSh217.8 billion.
Customer deposits rose to KSh1.7 trillion, while the gross loan book increased to KSh1.32 trillion from KSh1.21 trillion recorded during the same period last year.
The lender also reported a Return on Equity of 21.5 per cent, while shareholder equity grew by 18.5 per cent to KSh352.2 billion.
KCB Group Chairman Joseph Kinyua said the strong start to the year reflected the bank’s long-term strategy and the resilience of its regional operations.
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.
During the quarter, the bank also rolled out several major initiatives, including a partnership between the KCB Foundation and UNHCR to support refugees and host communities through financial inclusion programmes.
In March, KCB Bank Kenya secured approval for KSh12.5 billion financing from the Green Climate Fund to support green projects targeting small businesses and farmers.
The bank also sponsored the 2026 WRC Safari Rally with KSh227 million and introduced cheaper Pesalink transfer charges aimed at supporting individuals and small businesses.
