KCB Group Plc has reported a robust financial performance for the first quarter ending March 31, 2026, posting a Ksh. 24.4 billion net profit. This is 15.3% Ksh. 21.2 billion net profit that the banking group recorded during the same period in 2025.
The Group’s total operating income registered an 8.5% increase, climbing to Ksh. 53.6 billion. This growth was primarily driven by an expansion of interest-bearing assets, which successfully offset a compression in Net Interest Margins (NIM). The compression followed consecutive benchmark rate cuts by regional regulators, which reduced asset yields across major operating markets during the quarter.
KCB’s consolidated balance sheet grew by 10.8% to reach Ksh. 2.3 trillion (specifically Ksh. 2.25 trillion), anchored by heightened customer engagement across corporate and retail divisions. This customer onboarding drove total group deposits up by 15.7% year-on-year to Ksh. 1.7 trillion.
Notably, when factoring out the impact of National Bank of Kenya (NBK), which the Group divested from in May 2025, year-on-year pre-tax profit and operating income surged by 17% and 16% respectively, showcasing strong organic momentum.
Financial Snapshot: Q1 2026 vs. Q1 2025
The table below outlines key financial metrics extracted from the Group’s unaudited consolidated financial statements:
| Key Performance Line (KCB Group Consolidated) | Q1 2026 (Ksh. ‘000) | Q1 2025 (Ksh. ‘000) | YoY Change |
| Total Operating Income | 53,640,310 | 49,441,660 | +8.5% |
| Total Operating Expenses | 29,214,505 | 28,259,999 | +3.4% |
| Loan Loss Provisions | 4,909,132 | 5,604,495 | -12.4% |
| Profit Before Tax (PBT) | 24,425,805 | 21,181,661 | +15.3% |
| Profit After Tax (PAT) | 17,816,588 | 16,090,350 | +10.7% |
| Net Loans and Advances to Customers | 1,208,207,466 | 1,018,573,680 | +18.6% |
| Customer Deposits | 1,652,111,350 | 1,427,806,512 | +15.7% |
| Total Assets | 2,254,504,137 | 2,034,172,570 | +10.8% |
Subsidiary and non-banking contribution
KCB’s diversification strategy outside its main market continued to bear fruit. Subsidiaries excluding KCB Bank Kenya accounted for 29.5% of the Group’s total earnings and constituted 31.5% of the overall balance sheet.
The Group’s non-banking subsidiaries also sustained steady profitable contributions to the pre-tax pool:
- KCB Investment Bank: Ksh. 274 million
- KCB Bancassurance Intermediary: Ksh. 209 million
- KCB Asset Management: Ksh. 64 million
Total operating costs saw a 7.3% uptick to Ksh. 24.3 billion, a rise attributed to increased staff expenses, ongoing regional expansion footprint, and scaled investments in digital infrastructure. On the flip side, Non-Funded Income (NFI) grew by 8.3% to Ksh. 17 billion, bolstered by robust transaction volumes on digital lending channels and a rise in foreign exchange trading income.
A key highlight of the quarter was the significant turnaround in asset quality. Aggressive recovery campaigns combined with a 9.1% growth in the gross loan book effectively pushed the Group’s Non-Performing Loan (NPL) ratio downward to 16.6%, a notable reduction from the 19.3% recorded in Q1 2025. The total stock of NPLs reduced to Ksh. 217.8 billion from Ksh. 233.3 billion.
Despite improving asset asset indicators, KCB maintained an attitude of prudence against systemic risks, setting aside Ksh. 4.9 billion in loan loss provisions to strengthen both IFRS and prudential coverage ratios.
Commenting on the results, KCB Group Chief Executive Officer Paul Russo highlighted the balance between strategic execution and market realities: “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. 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.”
Group Chairman Dr. Joseph Kinyua echoed these sentiments, pointing to the bank’s long-term strategy while acknowledging external pressures: “The Group’s strong start to the year is a clear affirmation of the effectiveness of our long-term strategy. We remain confident in the Group’s ability to navigate evolving market dynamics. However, the Middle East conflict presents a significant counterforce to global growth through its impact on commodity markets, inflation expectations, and financial conditions.”
Shareholder returns remained high, with the Group registering a Return on Equity (ROE) of 21.5%. Total equity attributable to shareholders expanded by 18.5%, closing at Ksh. 352.2 billion compared to Ksh. 297.1 billion previously. Consequently, Earnings per Share (EPS) rose to Ksh. 22.18, up from Ksh. 20.03.
The group’s core capital to risk-weighted assets ratio closed at 18.2% (well above the statutory 10.5%), and its total capital-to-risk ratio reached 21.6% against a regulatory baseline of 14.5%. A healthy liquidity ratio of 51.1% ensures the institution remains agile enough to absorb future shocks or deploy capital toward emerging market opportunities.
KCB Group has advanced several strategic, green, and socio-economic initiatives over the first half of the year:
- Green Financing: KCB Bank Kenya secured approval for a $96.9 million (Ksh. 12.5 billion) green project facility from the Green Climate Fund (GCF), alongside bank co-financing, targeting MSMEs, agricultural stakeholders, and climate-vulnerable communities.
- Socio-Economic Partnerships: In January, the KCB Foundation formalized a milestone partnership with the UNHCR to advance financial inclusion and livelihood opportunities for regional refugees and host communities.
- Affordable Payments: To support retail users and MSMEs, KCB introduced a Ksh. 20 flat fee on Pesalink transfers, making transfers below KShs 1,000 completely free in alignment with the industry-wide “Tuma Direct na 20/-” affordability campaign.
- Sustainable Education: The bank partnered with the Ministry of Education to launch concessional loan products enabling public schools to transition to clean, affordable energy and lighting solutions.
- Corporate Branding & Awards: KCB injected Ksh. 227 million into the 2026 WRC Safari Rally sponsorship and took home multiple global titles, including Best Banking Group at the 2026 World Finance Banking Awards.