How KCB Pulled Off a Ksh24.4B Profit in Q1 2026

KCB Group Plc has posted a Ksh 24.4 billion profit before tax for the first quarter ending March 31, 2026, marking a 15.3 percent increase compared to Ksh 21.2 billion reported during the same period last year.

The lender attributed the growth to diversified revenue streams, strong subsidiary performance, improved customer activity, and disciplined balance sheet management despite a difficult operating environment across East Africa.

According to the financial results released on May 20, total operating income rose by 8.5 percent to Ksh 53.6 billion, supported by growth in interest-earning assets even as regulators across the region maintained lower asset yields that affected net interest margins.

KCB said its balance sheet expanded by 10.8 percent to Ksh 2.3 trillion, driven by increased customer activity across business segments, which also pushed customer deposits up by 15.7 percent.

Subsidiaries Drive Profit Growth

The bank noted that subsidiaries continued to play a critical role in earnings growth, with KCB Bank Kenya contributing 29.5 percent of the Group’s overall earnings while the Group’s non-banking subsidiaries sustained a profit before tax contribution of Ksh 20.9 billion.

KCB Bank Kenya, National Bank of Kenya, KCB Investment Bank and KCB Asset Management all posted positive contributions during the quarter.

Group Chief Executive Officer Paul Russo said the lender’s strategy of investing in digital innovation and regional expansion had continued to strengthen performance despite economic headwinds.

“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 that catalyzes economic transformation across the region,” said Russo.

He added that East Africa’s economic resilience had helped cushion the bank from global shocks linked to the Middle East conflict, which had depressed credit demand and increased financial market uncertainty.

“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,” Russo stated.

Also Read: KCB Investment Bank Scores Another Major Deal as Cable Experts Moves to Acquire East African Cables Stake

Costs, Loans and Returns on Investments

For KCB Bank, the aggregate operating costs were up by 7.3% to Ksh 24.3 billion due to increased costs relating to staff, technology, and investment.

The non-funded income grew by 8.3% to Ksh 17 billion, owing to the growth in digital lending revenues and foreign exchange earnings as the bank maintained its efforts in providing credit services to its clients.

Also noteworthy was the improved quality of assets, where the ratio of non-performing loans fell from 19.3% in December 2025 to 19.1%.

Provisioning for expected credit losses stood at Ksh 4.9 billion.

KCB’s gross loan book grew to Ksh 1.32 trillion from Ksh 1.21 trillion during a similar period last year, while customer deposits climbed to Ksh 1.7 trillion.

The Group delivered a return on equity of 21 percent while shareholders’ funds rose by 18.5 percent to Ksh 297.1 billion from Ksh 352.2 billion.

Earnings per share increased to Ksh 22.18 from Ksh 20.03 reported during the corresponding period in 2025.

Also Read: KCB Announces Mass Scholarship Opportunities for Youths in Select County

Expansion and Corporate Developments

During the quarter, KCB Foundation signed a partnership agreement with the United Nations High Commissioner for Refugees aimed at advancing financial inclusion and livelihoods for refugees and host communities across the region.

KCB Bank Kenya also secured approval for a Ksh 12.5 billion financing arrangement from the Green Climate Fund to support green projects targeting Micro, Small and Medium Enterprises and farmers.

Additionally, the bank further increased its brand visibility by sponsoring the WRC Safari Rally that would see it inject Ksh 227 million into the sporting event.

The bank also rolled out a nationwide consumer promotion campaign whose grand prize winner received a one-bedroom apartment at Tatu City.

In April, the bank signed an agreement with the Ministry of Education to support sustainable learning institutions through concessional financing aimed at helping schools adopt clean energy technologies.

KCB Group Chairman Joseph Kinyua said the lender remained confident in its long-term strategy and regional resilience despite global uncertainties.

“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,” Kinyua said.

“The Middle East conflict presents a significant counterforce to global growth through its impact on commodity markets, inflation expectations and financial conditions,” Kinyua added.

Follow our WhatsApp channel for instant news updates

KCB Group Chairman Joseph Kinyua(middle), KCB Group Plc Chief Executive Officer Paul Russo during the release of the group’s first quarter financial statement at the Nairobi Securities Exchange. PHOTO/ File