KCB Group PLC has announced a 20.8 per cent increase in Profit Before Tax (PBT) for the first half of 2026, reaching Sh49.3 billion compared to Sh40.8 billion in Half One (H1) 2025.
The financial performance was presented on Wednesday during an investor briefing held at a Nairobi hotel.
Following the strong results, the Board of Directors approved an interim dividend payout of Sh3.00 per share. This total payout of Sh9.64 billion represents a 50 per cent increase compared to the Sh2.00 per share interim dividend distributed in the corresponding period in 2025.
The dividend will be paid on or about November 10, 2026, to shareholders on the register at the close of business on September 2, 2026.
The Group’s total operating income rose 9.5 per cent year-on-year to Sh108.1 billion. Net interest income grew 7.0 per cent to Sh74.0 billion, while non-funded income (NFI) increased by 15.4 per cent to Sh 34.1 billion. Key drivers for NFI growth included a 30 per cent increase in lending fees of Sh8.0 billion and a 22 per cent rise in foreign exchange income of Sh6.3 billion.
The Group’s regional diversification strategy remained a significant driver of stability and earnings. Regional banking operations outside KCB Bank Kenya generated 27.7 per cent of the Group’s pre-tax profit and represented 31.1 per cent of total assets.
KCB Investment Bank reported a 226.6 per cent increase in PBT to Sh503.2 million, driven by capital markets transactions and advisory mandates.
KCB Corporate Trustee Services recorded a 79.8 per cent increase in PBT to Sh142.5 million.
KCB Bancassurance Intermediary Limited delivered Sh 335.4 million in PBT.
Speaking at the investor event, KCB Group Chairman Dr. Joseph Kinyua praised the Group’s oversight structure and macroeconomic navigation saying,
“The performance reflects the effectiveness of our governance framework and the disciplined execution of our long-term strategy. We remain focused on providing strategic oversight that enables sustainable growth, prudent risk management, and continued investment in innovation.”
Addressing the regional investment landscape, Dr. Kinyua noted: “East Africa continues to distinguish itself as one of the continent’s most resilient and attractive investment destinations. For KCB, our diversified regional business model continues to be a big strength, allowing us to provide households and businesses with the financial solutions they need.”
The Group’s total assets grew by 16.8 per cent to Sh2.30 trillion, up from Sh1.97 trillion as of June 2025. Customer deposits rose 15.1 per cent to Sh1.71 trillion, while gross loans expanded 14.2 per cent to Sh1.35 trillion, driven by disbursements across corporate, retail, and SME segments.
Asset quality showed improvement over the period. The stock of non-performing loans (NPLs) decreased by Sh17.3 billion year-on-year to Sh203.8 billion. Consequently, the Group NPL ratio improved by 360 basis points, dropping to 15.1 per cent from 18.7 per cent in H1 2025. Loan loss provisions fell 14 per cent to Sh10.8 billion.
Operating costs increased 5.8 per cent to Sh48.0 billion due to technology investments and branch expansion. However, strong revenue momentum reduced the cost-to-income ratio (CIR) to 44.4 per cent from 46.0 per cent.
KCB Group CEO Paul Russo emphasized the execution of the bank’s core strategy, “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. Despite a tough operating environment, we remain committed to supporting businesses and households, accelerating digital transformation and creating long-term sustainable value.”
Addressing operational scale and strategic trajectory, Russo added that, “We have spent the last 18 or so months pushing on performance. We have made significant investments in technology and we have made acquisitions. It is time to scale. Moving from incremental ambition to scale.”
During the first six months of 2026, KCB Group executed several operational and strategic initiatives such as upraising the digital lending and mobile volume where mobile loan disbursements grew by 25 per cent year-on-year to Sh314 billion, averaging Sh1.7 billion per day.
In Rwanda, BPR Bank partnered with MTN MoMo to launch MoFaya, a digital lending and savings product reaching over 6 million mobile money users.
Moreover, KCB Bank Tanzania issued the Mapato Sukuk (Islamic bond), raising TZS 30.24 billion against a TZS 10 billion target; a 302 per cent oversubscription rate.
For the full year 2026, KCB management targets a Cost-to-Income ratio of 42 per cent –44 per cent, an NPL ratio between 14 per cent –16 per cent, deposit growth of 9 per cent –11 per cent, and a Return on Equity between 20 per cent –22 per cent.
By Ian Maina and Tonny Omollo
