KCB Group has reported a KSh49.3 billion profit before tax for the first half of 2026, representing a 20.8 per cent increase, driven by strong income growth, improved asset quality and disciplined cost management.
The strong half-year performance has prompted the Board to declare an interim dividend of KSh3.00 per share, a 50 per cent increase from the KSh2.00 paid during the same period last year. The dividend will result in a total distribution of KSh9.64 billion to shareholders.
KCB Group Chief Executive Officer Paul Russo said the results demonstrated the resilience of the lender’s diversified business model and regional presence.
“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,” Russo said.
“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.”
Strong Growth Across the Business
Total income grew by 9.5 per cent to KSh108.1 billion, with non-funded income rising by 15.4 per cent to KSh34.1 billion. Funded income increased by 7 per cent to KSh74 billion.
The Group’s regional banking subsidiaries continued to play a significant role, contributing 27.7 per cent of profit before tax and accounting for 31.1 per cent of the total balance sheet.
Among the non-banking businesses, KCB Investment Bank recorded a 226.6 per cent growth in profit before tax to KSh503.2 million, driven by increased advisory mandates and capital markets transactions.
KCB Corporate Trustee Services posted a 79.8 per cent increase in profit before tax to KSh142.5 million, while KCB Bancassurance Intermediary Limited delivered KSh335.4 million in profit before tax.
Total assets rose by 16.8 per cent to KSh2.3 trillion, supported by a 15.1 per cent increase in customer deposits to KSh1.7 trillion. Gross loans also grew by 14.2 per cent to KSh1.3 trillion, driven by lending across the retail, SME and corporate segments.
Asset Quality Improves
The Group also reported an improvement in asset quality, with gross non-performing loans declining by KSh17.3 billion to KSh203.8 billion from KSh221.1 billion.
As a result, the non-performing loan ratio improved to 15.1 per cent from 18.7 per cent, reflecting recoveries, rehabilitation of distressed facilities and tighter credit risk management.
KCB’s loan-to-deposit ratio improved to 78.8 per cent from 79.5 per cent, while return on assets remained stable at 3.3 per cent.
The Group recorded a return on equity of 21.1 per cent, while total equity attributable to shareholders rose by 16.3 per cent to KSh357 billion.
KCB also maintained a strong capital position, with its Core Capital to Risk-Weighted Assets Ratio standing at 18.6 per cent, above the statutory minimum of 10.5 per cent. Its Total Capital to Risk-Weighted Assets Ratio stood at 21.6 per cent against the regulatory threshold of 14.5 per cent.
KCB Group Chairman Joseph Kinyua said the performance reflected the effectiveness of the Group’s governance and long-term strategy.
“The performance reflects the effectiveness of our governance framework, and the disciplined execution of our long-term strategy,” said Dr. Kinyua.
He said the Board would continue providing strategic oversight to support sustainable growth, prudent risk management and investment in innovation across the Group’s markets.
Digital Innovation and New Products
During the period, KCB continued to roll out new products and initiatives, including its Pata Kwako campaign aimed at expanding access to homeownership.
The lender also introduced a KSh20 flat fee for PesaLink transfers while making transactions of up to KSh1,000 free as part of efforts to promote affordable digital payments and financial inclusion.
Other developments included the rollout of Bid Express, a digital platform enabling customers to request and generate unsecured bid bonds remotely.
KCB Bank Tanzania also recorded strong investor interest in its Mapato Sukuk, with the first tranche raising TZS30.24 billion against an initial target of TZS10 billion.
The Group further strengthened its sustainability agenda through green financing, partnerships to solarise public health facilities and the launch of the Tujenge Pamoja Programme through KCB Foundation and Hivos.
The strong financial performance and increased interim dividend underline KCB Group’s strategy of balancing business expansion, shareholder returns, digital transformation and long-term sustainable growth across the region.
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