This Week in Markets: Banking Sector Performance
Equity Group has reclaimed its position as the most profitable bank in East and Central Africa, while HF Group has emerged as the fastest-growing listed bank. KCB continues to maintain its lead as the largest bank by asset base.
HF Group reported a profit before tax of Ksh 1.61 billion for FY2025, representing a 250% growth from Ksh 0.46 billion recorded in 2024. Looking ahead, the Group expects to grow pre-tax profits further to Ksh 2.486 billion in FY2026, a projected 54.5% increase.
#EnrichingLives
Also read: HF Group Posts Record 171% Growth to KES 1.4 Billion Post-Tax Profit in FY 2025
BK Group also delivered a solid performance, with profit after tax rising 14% to Ksh 9.7 billion. The Group rewarded shareholders with an 80% increase in dividends to RWF 53.04 (Ksh 4.71).
Across the sector, listed banks recorded a combined Ksh 280.3 billion in profits attributable to shareholders, marking a historic milestone.
Credit Growth & Financial Inclusion
Banks extended Ksh 326.5 billion in new loans to MSMEs in 2025, more than double the annual target of Ksh 150 billion. Equity, KCB, and Co-op alone accounted for nearly 55% of this lending, underscoring their central role in supporting business growth.
Britam FY 2025 Results
Britam Group reported a 10% increase in profit after tax to Ksh 5.5 billion, supported by higher insurance revenues, improved investment income, and cost management. The results mark the successful conclusion of its 2021–2025 strategy cycle.
Macroeconomic Environment
Inflation edged up slightly to 4.4% in March 2026 from 4.3% in February, reflecting relative price stability in the economy.
Fixed Income Market
The government raised Ksh 50.19 billion through reopened 15-year and 25-year Treasury bonds, surpassing the Ksh 40 billion target. The bonds carried coupon rates of 12.756% and 13.4% respectively, highlighting continued investor appetite for long-term government securities.
From Abojani: Banking Sector 2025 Review
As the banking sector for FY 2025 drew to a close, we hosted our Banking Sector Analysis X-Space.
Here’s a quick look at the key highlights:
- The banking sector is well positioned to withstand shocks.
- 7 banks have over Ksh 100 bn in shareholders’ funds.
- There is a boom in the wealth management space.
- I&M, NCBA, Equity, KCB & DTB are the kings of regional diversification.
- Be in the market for the longest.
- Fundamental analysis is the backbone of investing.
- The world is moving to an ownership economy.
Leadership Update
Catherine Kawira has been appointed as the NSE Company Secretary, succeeding Millicent Ngetich, who resigned from the position.
Upcoming corporate actions
Investors of IFB1/2021/018, IFB1/2020/009, FXD2/2019/010, and FXD1/2019/020 receive coupon payments tomorrow.
Coming Up
This April, we continue to mark Financial Literacy Month with initiatives aimed at building strong financial foundations.
On 10th April 2026, we will host a Financial Literacy for Teens Workshop in partnership with the Nairobi Securities Exchange and Sterling Capital at The Exchange, Westlands.
Scan the QR code on the flyer to register.
We also invite you to our online masterclass on personal finance and investing. This easy-to-follow, practical session will show you how to manage your money wisely, save more, and invest to achieve your financial goals and build long-term wealth.
Last minute sign ups are still in progress, Get Your Spot Here
