KCB Group, one of East Africa’s largest banking groups, reported an 11 percent increase in pre-tax profit for the 2025 financial year, supported by strong growth in interest income and expansion across regional markets.
The Nairobi-listed lender said Wednesday that pre-tax profit rose to 90.9 billion Kenyan shillings (about $703.8 million), up from 82 billion shillings recorded in 2024.
The bank attributed the improved performance largely to higher earnings from loans and advances, reflecting sustained demand for credit in key markets and a relatively resilient banking environment despite broader economic pressures across the region.
Net interest income rose by eight percent to 148.0 billion shillings in 2025, compared with 137.3 billion shillings a year earlier, the group said in its annual financial results.
“We recorded strong growth in interest income supported by expansion in our loan book and improved yields across several markets,” the bank said in a statement accompanying the results.
KCB, which operates subsidiaries in several African countries, continues to position regional expansion as a central pillar of its growth strategy.
Outside Kenya, the bank maintains operations in the Democratic Republic of the Congo, Tanzania, Rwanda, South Sudan, Uganda and Burundi.
According to the bank, subsidiaries outside its home market contributed 31 percent of the group’s total pre-tax profit during the year, underlining the growing importance of regional operations in its earnings mix.
Finance Director Lawrence Kimathi told investors during a briefing that the group continued to see strong contributions from its non-Kenyan subsidiaries as financial inclusion and digital banking services expand across East and Central Africa.
“Our regional businesses remain an important engine of growth, contributing significantly to profitability and strengthening our diversified revenue base,” Kimathi said.
Total assets at the group grew nine percent year-on-year to 2.15 trillion Kenyan shillings, reflecting growth in customer deposits, lending activity and broader balance-sheet expansion.
However, the lender reported a modest increase in loan impairment charges, a measure of expected credit losses, which rose to 32.4 billion shillings in 2025 from 30 billion shillings in the previous year.
The rise in impairment costs reflects lingering credit risks linked to elevated borrowing costs and economic pressures affecting some borrowers across the region.
Banks across East Africa have faced a challenging operating environment over the past two years as central banks tightened monetary policy to combat inflation, pushing interest rates higher and increasing repayment burdens for businesses and households.
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Despite these challenges, KCB said its diversified regional footprint and continued investment in digital banking platforms helped support revenue growth and operational resilience.
The group has also been expanding its digital financial services as more customers adopt mobile banking and online payment systems, a trend accelerated by the region’s rapid mobile-money adoption.
Industry analysts say KCB’s performance reflects the growing strength of regional banking groups that operate across multiple African markets, allowing them to balance economic cycles in different countries.
East Africa’s banking sector has seen increased competition in recent years as lenders expand into neighbouring markets, invest in technology and target underserved customers.
For KCB, maintaining strong asset quality while sustaining loan growth will remain a key focus as the group navigates economic uncertainty in some markets.
Nevertheless, the latest results signal continued momentum for one of the region’s most influential lenders as it deepens its presence across East and Central Africa.
