Kiharu Member of Parliament (MP), Ndindi Nyoro, has called for the merger of KCB Bank and Equity Group.
In a statement on 13 August, Nyoro said the two banks recorded substantial profits in the first six months of 2025.
KCB Group recorded a Ksh32.3 billion profit after tax, while Equity Group recorded a net profit of Ksh34.6 billion.
Nyoro explained that this growth is being driven by regional subsidiaries such as the Democratic Republic of Congo (DRC).
He pointed out that KCB’s shareholders’ funds now exceed Ksh300 billion, whilst the market capitalisation is Ksh158.5 billion by the close of trading today.
On the other hand, Equity Bank’s shareholders’ funds stand at Ksh274 billion and the market capitalisation is Ksh205 billion.
Hence, the banks are trading at approximately 0.52 and 0.75 times their price-to-book value, respectively.
Nyoro noted that the current trend in the stock market is dividend-driven, and shareholders are less interested in growth strategies and more focused on the bottom line.
He stated that both banks are trading at a discount, with their price-to-book ratios below 1.
Both institutions are now nearly as profitable as Safaricom PLC. They are peers in terms of profitability. However, with a market cap of Ksh1 trillion, Safaricom is valued five times more than either bank.
Nyoro Advises for a Merger to Control Africa Banking Industry
Nyoro suggested that one of the banks should attempt a takeover of the other, or they should both agree to merge.
He said the merger would optimise costs, particularly in branch networks, IT, and other sectors.
He explained that the combined group would increase margins, especially in regional markets like DRC, where KCB and Equity are leading.
Why compete when they can target low-hanging fruit? The group would become the largest bank in Africa outside South Africa and would dominate the continent’s financial sector.
Nyoro said the combined assets and capital of both banks would form a significant entity capable of lending to major development projects, including sovereign loans.
He emphasised that the group would have enough strength to even challenge South African banks like Standard Bank, further consolidating their dominance.
He mentioned that the group’s one-year profit would be sufficient to acquire Access Bank or UBA Group.
Also Read: CBK Lowers Lending Rates for All Kenyan Banks Again
Message to the Two CEOs
Nyoro urged Equity Group Managing Director and CEO Dr. James Mwangi and his KCB counterpart, Paul Russo, to seriously consider the proposal.
Bottom line – Dr. James Mwangi or Mr. Paul Russo must take action to make this happen. It would be a great achievement for our country on the African map. We can address competition issues later. For now, give Kenyans a combined KCB – Equity Group.
KCB & Equity Bank Lead in CBK’s Market Share Report
The Central Bank of Kenya’s (CBK) Bank Supervision Annual Report 2024 ranked KCB and Equity Bank as the leading institutions in deposits, shareholders’ funds, and customer accounts.
CBK identified KCB as the largest bank, holding a 16.6% market share and total net assets of Ksh1.28 trillion.
KCB also leads in deposits at Ksh988.5 billion and in shareholders’ funds at 15.5%.
The bank maintained the largest customer base, with 53.6 million deposit accounts and 1.43 million loan accounts.
Equity Bank Kenya Limited followed with a 12.8% market share and Ksh1.03 trillion in assets.
The bank serves over 14.4 million deposit accounts and 844,445 loan accounts.
It manages Ksh843.6 billion in deposits and holds 10.4% of shareholders’ funds.
Half-Year Results
Equity Group reported a profit after tax of Ksh34.6 billion for the half-year ending 30 June 2025.
This marks a 16% increase from Ksh29.6 billion reported during the same period in 2024.
Net interest income rose to Ksh59.3 billion from Ksh54.4 billion.
Interest expenses decreased by Ksh5.5 billion, down to Ksh25 billion from Ksh30.5 billion last year.
KCB recorded a profit after tax of Ksh32.3 billion, up from Ksh29.9 billion in 2024.
The group’s total assets stood at Ksh1.9 trillion, with total liabilities of Ksh1.6 trillion.
KCB’s total shareholders’ funds are Ksh306 billion, and it posted an operating income of Ksh98.6 billion.
Equity Bank Ownership
Equity Group owns several subsidiaries, including Equity Insurance Group, Equity Technology Group, and The Foundation.
Equity Bank Kenya has over 212 branches across the country.
It also operates in Uganda, Tanzania, Rwanda, South Sudan, and DRC.
Also Read: List of 10 Largest Banks in Kenya by Market Share
KCB Bank Shareholders Structure
KCB is owned by KCB Group Plc and has over 200 branches in Kenya.
It also has subsidiaries in Tanzania, Uganda, Rwanda, Burundi, South Sudan, and DRC.
KCB Group additionally owns KCB Bancassurance Intermediary, KCB Investment Bank, KCB Asset Management, KCB Foundation, and other associated companies. Foundation, and other associate companies.
As of December 31, 2024, the Permanent Secretary to the Treasury of Kenya is the largest shareholder in KCB Group Plc, holding 635,001,947 shares, which translates to 19.76% of the total shareholding.
The National Social Security Fund (NSSF) is the second-largest shareholder with 321,734,192 shares, representing 10.01% of the company.
Stanbic Nominees Ltd A/C Nr3530153-1 is the third holder with 141,905,400 shares which is 4.42% of the issued shares.
Kenya Commercial Bank Nominees Ltd A/C 927b owns 79,289,541 shares, representing 2.47% of KCB Group.
Besides, Standard Chartered Kenya Nominees Ltd A/C Ke004667, which controls 61,384,600 shares, equivalent to 1.91% ownership.
Moreover, Sandip Kana Sinh Babla and Alka Sandip Babla jointly hold 30,949,100 shares, representing 0.96% of the company.
Standard Chartered Kenya Nominees Ltd A/C KE003534 own 30,270,700 shares, accounting for 0.94% while Standard Chartered Nominees Non-Resident A/C KE10085 hold 27,864,726 shares, or 0.87% of the total shares.
Sandip Kanaksinh Karsandas Babla has 27,365,200 shares which is 0.85% of the shares.
Finally, Standard Chartered Kenya Nominees Ltd A/C KE003565 holds 23,629,300 shares, which is 0.74% of KCB Group’s total shares.
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