KCB Group Plc posted a 10 percent rise in profit after tax to KSh18.2 billion for the first quarter ended March 31, 2026, supported by higher operating income, growth in customer deposits and improved asset quality across its regional businesses.
The lender’s unaudited financial statements show that profit after tax and exceptional items rose to KSh18.20 billion, from KSh16.54 billion in the same period last year. Profit attributable to shareholders, after accounting for non-controlling interest, stood at KSh17.82 billion, compared with KSh16.09 billion a year earlier.
KCB Group’s profit before tax increased 15.3 percent to KSh24.4 billion, up from KSh21.2 billion in the first quarter of 2025, reflecting what the Group described as resilience in a difficult operating environment.
Total operating income grew 8.5 percent to KSh53.6 billion, mainly driven by growth in interest-earning assets, which offset pressure from declining net interest margins. The Group said sustained rate cuts by regulators across the region reduced asset yields in all its markets during the period under review.
Net interest income rose to KSh36.6 billion, from KSh33.7 billion a year earlier, while total other operating income increased to KSh17.03 billion, supported by growth in fees and commissions, foreign exchange trading income and other income streams.
Non-funded income grew 8.3 percent to KSh17 billion, helped by increased digital loan disbursements and higher foreign exchange income, as the Group continued supporting businesses and households with credit for trade, investment and working capital needs.
Group Chief Executive Officer Paul Russo said the results reflected disciplined execution and continued investment in digital innovation.
“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,” Russo said.
He added that although economic activity in East Africa remained resilient, the Middle East conflict posed risks to regional economies, including weaker credit demand, increased credit risk, lower remittance receipts and pressure on deposits.
The Group’s balance sheet expanded 10.8 percent to KSh2.3 trillion, while customer deposits increased by about 16 percent to KSh1.7 trillion, driven by continued onboarding of new corporate and retail customers. Gross loans and advances rose to KSh1.32 trillion, from KSh1.21 trillion a year earlier.
KCB also recorded an improvement in asset quality, with the non-performing loan ratio falling to 16.6 percent, from 19.3 percent a year earlier. The stock of non-performing loans reduced to KSh217.8 billion, from KSh233.3 billion, supported by recoveries and expansion of the loan book.
The Group set aside KSh4.9 billion in loan loss provisions during the quarter, down from KSh5.6 billion in the same period last year, while maintaining what it described as prudent provisioning in light of prevailing economic risks.
Operating expenses increased to KSh29.2 billion, from KSh28.3 billion a year earlier, driven by staff costs, technology investments, depreciation and business expansion costs. Staff costs stood at KSh10.5 billion, while other operating expenses amounted to KSh10.9 billion.
Subsidiaries outside KCB Bank Kenya continued to play a significant role in the Group’s performance, contributing 29.5 percent of overall Group earnings before tax and 31.5 percent of the Group balance sheet. KCB’s non-banking subsidiaries also remained profitable, with KCB Bancassurance Intermediary contributing KSh209 million, KCB Investment Bank KSh274 million, and KCB Asset Management KSh64 million in pre-tax profit.
Shareholder returns improved during the quarter, with return on equity reported at 21.5 percent. Total equity attributable to shareholders rose 18.5 percent to KSh352.2 billion, while earnings per share increased to KSh22.18, from KSh20.03in the corresponding period last year.
The Group maintained capital levels above regulatory requirements, with core capital to total risk-weighted assets at 18.2 percent, compared with the statutory minimum of 10.5 percent. Total capital to risk-weighted assets stood at 21.6 percent, against a regulatory minimum of 14.5 percent, while the liquidity ratio was 51.1 percent, above the required minimum of 20 percent.
KCB Group Chairman Joseph Kinyua said the strong start to the year affirmed the Group’s long-term strategy and the resilience of its regional businesses.
“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.
He said the Group remained confident in its ability to navigate changing market dynamics while supporting economic growth, regional trade and financial inclusion across its markets. However, he warned that the Middle East conflict remained a major risk to global growth through its effect on commodity markets, inflation expectations and financial conditions.
During the quarter, KCB Foundation signed a partnership with UNHCR to advance financial inclusion, livelihoods and long-term socio-economic opportunities for refugees and host communities across the region. KCB Bank Kenya also received approval for $96.9 million, equivalent to KSh12.5 billion, in financing from the Green Climate Fund and co-financing from the bank to support green projects for MSMEs, farmers and vulnerable communities.
The bank also sponsored the 2026 WRC Safari Rally with KSh227 million and signed an agreement with the Ministry of Education to support sustainable learning institutions through financing for clean energy technologies.
In payments, KCB Bank Kenya introduced a KSh20 flat fee on Pesalink transfers, with free transfers for amounts below KSh1,000, as part of the industry’s “Tuma Direct na 20/-” campaign aimed at making real-time payments more affordable for individuals and MSMEs.
KCB Group operates across Kenya, Tanzania, South Sudan, Uganda, Rwanda, Burundi and the Democratic Republic of Congo, with representative offices in Ethiopia and Brussels. The Group says it has the largest branch network in the region, with 450 branches, 1,249 ATMs and more than 1.3 million merchants and agents.
