In the first half of 2026, Kenya’s listed banks demonstrated a strong performance, with the majority of lenders achieving double-digit profit growth despite ongoing concerns about asset quality. Equity Group took the lead, with its pre-tax profit increasing by 32% to Sh45.5 billion, driven by a 39% rise in profit before tax to Sh57.8 billion, which was generated from a total income of Sh124.9 billion that was up 25%.
Following closely, KCB reported a 14% increase in net profit to Sh36.9 billion, with pre-tax profit rising 20.8% to Sh49.3 billion. Other notable performers included Co-op Bank, which saw a 28% increase to Sh18 billion, Family Bank with a 62% rise to Sh3.7 billion, and DTB with a 34% increase to Sh6.4 billion, whereas Absa and StanChart Kenya experienced declines of 9.8% and 17%, respectively.
Regional operations have become a key aspect of the Kenyan banking sector. Equity’s subsidiaries outside of Kenya now account for 51% of the group’s deposits, 54% of its loans, and 52% of its banking assets, with a presence in DRC, Uganda, Tanzania, Rwanda, and South Sudan. Similarly, KCB’s regional units contributed 27.7% of the group’s pre-tax profit and 31.1% of its balance sheet, spanning Rwanda, DRC, Uganda, Tanzania, Burundi, and South Sudan. In contrast, NCBA’s East African subsidiaries generated relatively modest earnings, with combined profits of Sh1.6 billion from its Tanzania, Uganda, and Rwanda units, which is a fraction of the group’s total profit of Sh12.4 billion.
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The expansion of Tanzania’s banking sector is significantly impacting regional rankings. In 2025, the sector recorded net profits of approximately TZS 2.47 trillion, equivalent to $950 million, representing a 14.7% increase, which followed a 40.9% jump in 2024. This growth is attributed to infrastructure spending on the SGR, ports, and energy.
As a result, market valuations have increased, with CRDB’s market capitalization rising from $762 million to $2.7 billion over twelve months, and NMB’s rising from $1.1 billion to $2.7 billion, placing both banks third and fourth in regional rankings, behind only Safaricom and MTN Uganda. However, Kenya still maintains a deeper corporate environment, with eleven of the region’s top twenty listed companies by value being Kenyan, compared to six from Tanzania and three from Uganda, reflecting decades of more developed capital markets in Nairobi.
The comparison between Kenyan and Tanzanian banks is not solely based on growth rates, as several Kenyan banks have matched or exceeded CRDB’s 20% growth pace. Rather, it is about which banks are building on a stronger foundation. Tanzanian banks are growing from a smaller base, with fewer legacy non-performing loan burdens, whereas Kenya’s largest lenders are increasingly becoming pan-African institutions, with their fortunes becoming less tied to the domestic economy. The outcome of this diversification will likely determine the next reporting cycle, as it may prove to be either a strength or a new source of risk.
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