KCB Group's Posts 21% Profit Jump as Operating Income Crosses KSh 100Bn

KCB Group became the second Kenyan banking group to cross KSh 100 Bn in half-year operating income, after Equity Group breached the mark in H1 2025, as its income rose 9.5% to a record KSh 108.09 Bn.

• Profit before tax climbed 20.8% to KSh 49.32 Bn, helped by stronger funded and non-funded income, lower credit impairment and improved cost efficiency.
• For the six months ended June 2026, consolidated profit after tax rose 14.0% to KSh 36.87 Bn from KSh 32.33 Bn, extending KCB's earnings to the highest first-half level in its historical series. Profit attributable to shareholders increased 14.5% to KSh 36.07 Bn.
• KCB expanded its balance sheet 16.8% to a record KSh 2.30 Tn, more than three times the KSh 746.52 Bn recorded in H1 2019.

The slower growth in net profit relative to pre-tax earnings reflected a 46% increase in the tax charge to KSh 12.46 Bn.

The board raised the interim dividend 50% to KSh 3.00 per share, translating to a KSh 9.64 Bn payout. Shareholders on the register at the close of business on September 2 will receive the dividend on November 10. Earnings per share increased 14% to KSh 22.45.

Lower Funding Costs, Higher Fees Lift Income

Net interest income increased 7.0% to KSh 74.00 Bn, despite total interest income growing by a slower 4.0% to KSh 104.47 Bn. Interest expenses declined 2.9% to KSh 30.46 Bn as KCB repriced high-cost deposits and its cost of funds eased to 3.4% from 3.9%.

Non-interest income grew faster, rising 15.4% to KSh 34.08 Bn and increasing its contribution to total income to 31.5% from 29.9%. Net fees and commissions rose 18%, with lending fees up 30% on higher loan volumes, while foreign-exchange income increased 22% to KSh 6.35 Bn on increased transaction volumes.

Operating costs excluding impairment increased 6% to KSh 47.99 Bn, reflecting technology investment and costs associated with business and branch expansion. With revenue growing faster than costs, the cost-to-income ratio improved to 44.4% from 46.0%.