KCB Boosts Shareholder Returns with Total Dividend of KShs 22 Billion

KCB Group PLC has reported a strong financial performance for the year ending December 2025, posting a profit after tax of KShs. 68.4 billion, up 11% from the previous year.

The growth was driven by an expanded loan book, higher income across key business lines, and disciplined cost management across the Group.

In recognition of this performance, the Board has proposed a final dividend of KShs. 3 per share, subject to shareholder approval.

This follows an interim dividend of KShs. 4 per share paid in November 2025, bringing the total dividend payout for the year to KShs. 7 per share, amounting to KShs. 22 billion in returns to shareholders.

Strong Balance Sheet and Revenue Growth

During the period under review, KCB maintained a robust balance sheet, with total assets growing by 9.3% to KShs. 2.15 trillion, even after divesting from National Bank of Kenya.

The Group’s customer loans increased by 15% to KShs. 1.59 trillion, funding interest-earning assets which rose by 13.8% year-on-year to KShs. 1.84 trillion.

Total revenues grew steadily to KShs. 214 billion, up from KShs. 204 billion in 2024, supported by higher net interest income and increased contributions from digital banking, which accounted for 31% of total revenues.

CEO Commentary

Speaking during the announcement of the financial results, KCB Group CEO Paul Russo said:

“Our 2025 performance reflects the strength of the KCB franchise, the resilience of our regional footprint, and the continued trust that customers place in us. Despite a challenging operating environment, we delivered solid growth driven by disciplined execution, continued investment in digital innovation, and our unwavering commitment to supporting sector-focused lending that catalyzes economic transformation across the region. We remained focused on sustainable growth, supporting customers and delivering long-term value for shareholders.”

Profitability and Subsidiary Performance

The Group continued to benefit from its regional diversification strategy. Subsidiaries outside Kenya contributed 30.7% of profit before tax (PBT) and accounted for 30.5% of the Group’s balance sheet, underscoring the success of KCB’s multi-market growth model. Among non-banking subsidiaries:

• KCB Bancassurance Intermediary posted KShs. 1.14 billion (29% growth)

• KCB Investment Bank recorded KShs. 348 million (31% growth)

• KCB Asset Management delivered KShs. 160 million (54% growth)

Cost management remained a priority, with the cost-to-income ratio dropping to 42.5% from 45.4%, while operating expenses declined by 2.5% year-on-year.

Balance Sheet and Asset Quality

Gross loans and advances rose 16.2% to KShs. 1.25 trillion, reflecting strong new-to-bank growth across key economic sectors. The deposit book grew 15% to KShs. 1.59 trillion, maintaining stability across all markets.

Asset quality also improved, with the Non-Performing Loans (NPL) ratio declining to 16.9% from 19.2%, driven by proactive rehabilitation strategies and recovery efforts. The gross NPL stock fell to KShs. 211.8 billion, down from KShs. 225.7 billion in 2024.

KCB maintained a strong capital and liquidity position, with core capital at 18.4% of total risk-weighted assets, well above the statutory minimum of 10.5%, and a total capital ratio of 22.1% versus a regulatory minimum of 14.5%.

The liquidity ratio stood at 50.8%, against a minimum requirement of 20%. Shareholder returns remained robust, with Return on Equity (ROAE) at 22.5% and Return on Assets (ROA) at 3.3%, while shareholder funds totaled KShs. 331 billion.

Outlook

KCB Group Chairman Dr. Joseph Kinyua noted:

“Looking ahead, we are optimistic about sustained business activity and economic growth prospects across the markets we operate in. We are closely watching the increased global uncertainties attributed to heightened geopolitical tensions and higher tariffs. The Board remains committed to providing strong governance and strategic oversight to ensure that KCB continues to deliver long-term value while supporting economic transformation across East Africa.”

Key Corporate Developments

• Corporate Social Responsibility: The Group continued to support various initiatives through targeted sponsorships and corporate social investments, staying true to its Environmental, Social and Governance (ESG) commitments.

• World Rally Championship Sponsorship: KCB Bank Kenya allocated KShs. 227 million for the 2026 WRC Safari Rally Kenya in Nakuru, marking the sixth consecutive year of support since the rally’s return.

• Green Finance Initiative: In December, KCB Bank Kenya partnered with the African Development Bank (AfDB) on a $150 million financing package to accelerate climate-smart investments and trade finance for SMEs and corporate clients.

• Digital Expansion: In November, KCB Group invested in Pesapal Limited, expected to accelerate commerce and inclusive digital growth across Africa. Earlier in January, KCB received approval from the Competition Authority of Kenya (CAK) to acquire 75% of a payments technology firm. A new unified mobile app was also launched to streamline payments, savings, and investments.

• Accolades: KCB’s performance and innovation have earned local, regional, and global recognition, including being named Top Bank in Africa by The Banker.