Equity Bank and KCB Bank are intensifying their expansion plans into Ethiopia, one of Africa’s largest untapped banking markets.
The move follows strong financial performance from both banks, particularly Equity Bank, which posted a profit after tax of KSh 75.5 billion for the financial year ending December 31, 2025, up 52% from the previous period.
Both banks are preparing to leverage their experience in East and Central Africa to establish operations in Addis Ababa, reshaping competition in the regional banking sector.
Equity and KCB Expansions to Ethiopia
Equity Bank has been preparing for Ethiopia for several years. In 2019, the bank received a license to operate and set up a Commercial Representative Office in Addis Ababa. Hassan Maalim was appointed as Head of the office, bringing extensive experience from his time at Equity since 2005.
The establishment of a local office in Addis Ababa was intended to understand the market, build relationships with regulators, and lay the groundwork for full commercial operations.
Kenya Commercial Bank (KCB) is also targeting entry into Ethiopia’s market before the end of 2026 through the acquisition of a stake in a local bank.
Also Read: Breakdown of Equity Group Customer Base, Branches, and Employees in East Africa
Speaking in an Interview, KCB Director of Finance Lawrence Kimathi stated that under Ethiopia’s new banking framework, foreign investors can hold up to 40 percent of shares in a domestic bank, while total foreign ownership is limited to up to 49 percent.
“The current law says a maximum of 40 percent and an additional so foreign shareholding should not go beyond 49 percent. But the law is structured in a way that the regulator has been given the powers, and if they believe foreign ownership can add more value as a majority, they can engage in that conversation,” said Kimathi.
During the release of its 2025 financial year results, Equity Group announced plans to expand its customer base to 100 million by 2030.
The plan also includes creating job opportunities and aims to grow the employee base to 25 million.
The bank reported on Wednesday, March 11, an 11% rise in full-year 2025 pre-tax profit, driven by growth in interest income.
At the same time, the lender said pre-tax profit climbed to Ksh 90.9 billion ($703.83 million), up from Ksh 82 billion the previous year.
Its subsidiaries outside Kenya contributed 31% of the group’s pre-tax profit.
Additionally, Net interest income rose by 8% to 148.0 billion shillings, from 137.3 billion shillings in 2024, the company said.
How Entry Will Shape Regional Leadership
The entry of both Kenyan banks into Ethiopia is expected to influence the broader dynamics of East African banking.
Equity Bank’s regional subsidiaries now contribute almost half of the group’s revenues, reflecting a strategy heavily reliant on cross-border operations.
KCB Group, while also expanding regionally, may adopt a more cautious approach, focusing on structured partnerships and regulatory alignment.
Commenting on the performance, Kiharu MP Ndindi Nyoro, who is also a finance expert, stated that the banks should also aim to enter the South African market with their improved profits.
It will be Equity Bank, then KCB, going forward. This will likely be determined by not when but how they enter Ethiopia. Equity is likely to be more market-driven in this, whether greenfield or brownfield. West African market must now be “work in progress” and viable expansion targets for the two Banks. One year profit of Equity Group can buy over 55% of Nigerian Banking giant, Access Bank. Later, they must get into Southern Africa and then cement this by dominating the entire Continent,” said the lawmaker.
KCB Announces Ksh22 Billion Dividend
The lender’s shareholders are set for a substantial payout after the KCB proposed a total dividend of Ksh7 per share for the financial year ended 2025, translating to about Ksh22.5 billion in returns to investors.
Payout includes a proposed final dividend of Ksh3 per share—comprising Ksh2 ordinary and a Ksh1 special dividend—bringing the total dividend for the year to Ksh7 per share after the bank earlier paid Ksh4 in interim and special dividends.
The lender reported earnings per share of Ksh20.79, representing a 12 percent year-on-year increase, with the dividend payout ratio at about 33.7 percent.
Also Read: Huge Payday for KCB Shareholders as Bank Announces Ksh22 Billion Dividend
Based on the current share price of around Ksh78.25, the dividend yields approximately 8.9 percent.
Equity Group Customer Base, Branches, and Employees Across Regions
In Kenya, the group has 221 branches serving 14.1 million customers with 6,999 employees, 328 ATMs, 42,634 agency outlets, and 1.3 million merchants.
On the other hand, Equity Uganda serves 2.2 million customer accounts through 50 branches, supported by 1,332 employees, 58 ATMs, 9,394 agency outlets, and 50,463 merchants.
The group’s subsidiary in the Democratic Republic of Congo manages 3.5 million customer accounts with 81 branches, 3,322 employees, 405 ATMs, 25,695 agency outlets, and 7,791 merchants.
Its Rwanda subsidiary also operates 36 branches, serving 1.8 million customer accounts with 1,009 employees, 54 ATMs, 6,097 agency outlets, and 16,037 merchants.
In South Sudan, the group has 5 branches, 146 employees, and 218,000 customer accounts, supported by 20 ATMs, 76 agency outlets, and 800 merchants.
In Tanzania, it operates 16 branches with 562 employees, 568,000 customer accounts, 22 ATMs, 3,792 agency outlets, and 2,693 merchants.
