KCB Group Plc grew profit before tax by 20.8 percent to Kshs 49.3 billion in the first half of 2026, up from Kshs 40.8 billion in the same period last year. The lender announced the results on Wednesday, crediting income growth and tighter cost discipline for the jump.
Total assets grew 16.8 percent to Kshs 2.3 trillion. Customer deposits rose 15.1 percent to Kshs 1.7 trillion, while gross loans expanded 14.2 percent to Kshs 1.3 trillion, supported by strong demand across the corporate and retail franchise.
“Our strong half year performance reflects the resilience of KCB Group’s diversified business model, the strength of our regional footprint, and the confidence our customers continue to place in us,” said Group Chief Executive Officer Paul Russo.
“Despite a tough operating environment, we remain committed to supporting businesses and households, accelerating digital transformation and creating long term sustainable value for our shareholders and the communities which we serve.”
Key Half Year Numbers
| Metric | H1 2026 | Change YoY |
|---|---|---|
| Profit before tax | Kshs 49.3 billion | Up 20.8% |
| Total income | Kshs 108.1 billion | Up 9.5% |
| Net interest income | Kshs 74.0 billion | Up 7.0% |
| Non funded income | Kshs 34.1 billion | Up 15.4% |
| Total assets | Kshs 2.3 trillion | Up 16.8% |
| Customer deposits | Kshs 1.7 trillion | Up 15.1% |
| Gross loans | Kshs 1.3 trillion | Up 14.2% |
| Gross NPLs | Kshs 203.8 billion | Down from Kshs 221.1 billion |
| NPL ratio | 15.1% | Down from 18.7% |
| Loan loss provisions | Kshs 10.8 billion | Down from Kshs 12.5 billion |
| Return on equity | 21.1% | — |
| Return on assets | 3.3% | Stable |
| Interim dividend | Kshs 3.00 per share | Up 50% |
Board Lifts Interim Dividend By Half
The board declared an interim dividend of Kshs 3.00 per ordinary share, up 50 percent from Kshs 2.00 a year earlier, for a total payout of Kshs 9.64 billion. Shareholders on the register at close of business on September 2, 2026 will receive payment on or about November 10, 2026.
Group Chairman Dr Joseph Kinyua linked the dividend increase to governance and execution. “The performance reflects the effectiveness of our governance framework, and the disciplined execution of our long term strategy,” Kinyua said.
“We remain focused on providing strategic oversight that enables sustainable growth, prudent risk management and continued investment in innovation, ensuring KCB Group remains well positioned to support economic development and deliver long term value to our shareholders and all stakeholders across the region.”
Regional Units And Bad Loan Cleanup Drive Growth
Beyond its home market, KCB Group operates across Democratic Republic of Congo, Tanzania, Rwanda, South Sudan, Uganda and Burundi. Subsidiaries outside Kenya contributed 27.7 percent of group profit before tax and held 31.1 percent of the total balance sheet, underlining how far the group’s earnings now stretch beyond its Kenyan base.
Asset quality moved in the right direction too. Gross non performing loans fell by Kshs 17.3 billion to Kshs 203.8 billion, pulling the NPL ratio down to 15.1 percent from 18.7 percent. KCB attributed the improvement to rehabilitating distressed facilities, strengthening recoveries, and tighter credit risk discipline. Loan loss provisions dropped to Kshs 10.8 billion from Kshs 12.5 billion, while the loan to deposit ratio improved slightly to 78.8 percent from 79.5 percent.
Capital buffers held well above regulatory floors. Core capital to risk weighted assets stood at 18.6 percent against a statutory minimum of 10.5 percent, and total capital to risk weighted assets reached 21.6 percent against a 14.5 percent threshold.
Non Banking Units Post Sharp Gains
KCB’s non banking subsidiaries grew faster than the core bank during the half.
| Subsidiary | PBT H1 2026 | Change YoY |
|---|---|---|
| KCB Investment Bank | Kshs 503.2 million | Up 226.6% |
| KCB Corporate Trustee Services | Kshs 142.5 million | Up 79.8% |
| KCB Bancassurance Intermediary | Kshs 335.4 million | Not disclosed |
KCB credited the investment bank’s growth to increased advisory mandates and capital markets transactions, and the trustee business’s gain to expanding fiduciary services.
Housing And Payments Initiatives Widen Reach
KCB pushed several retail initiatives through the half year. In April it launched the Pata Kwako campaign, pairing an MSME mortgage product with fifteen year terms at 9.9 percent a year for gig economy workers and small businesses with irregular income. It followed with a scheme mortgage for Kenya Defence Forces members starting at 4 percent a year.
KCB Bank Tanzania’s first tranche of its Mapato Sukuk drew TZS 30.24 billion in demand against a TZS 10 billion target, a 302 percent oversubscription that points to strong regional appetite for Sharia compliant instruments. In May, KCB introduced a flat Kshs 20 fee on PesaLink transfers while waiving charges on transfers up to Kshs 1,000, part of a push toward lower cost digital payment channels.
On sustainability, KCB’s 2025 Sustainability Report recorded Kshs 48.8 billion in green financing during the year. The KCB Foundation partnered with Hivos to launch the Tujenge Pamoja Programme supporting Kenya’s shift to a circular economy, and the group partnered with Nandi and Machakos counties to solarise public health facilities. KCB Group was named Kenya’s Best Bank by Euromoney and Best Banking Group at the World Finance Banking Awards, and featured among the Financial Times’ Africa’s Fastest Growing Companies 2026.
What The Results Signal For The Rest Of 2026
KCB Group closes the half year with faster earnings growth than a year ago, a shrinking pile of bad loans, and a dividend policy trending upward rather than flat. Its regional units now generate more than a quarter of group profit, giving management room to lean on markets outside Kenya if domestic conditions tighten. With capital ratios well clear of regulatory minimums and non banking units growing fastest of all, the group heads into the second half with more levers to pull than most of its Nairobi listed peers.
