Equity Posts Ksh34B Profit, Nairobi-Mombasa Expressway Proposal Rejected, 11 Banks Fined Ksh191M

Hello, I’m Annah. Welcome to today’s edition of The Business Roundup, your go-to source for the latest insights into Kenya’s evolving business scene. In this edition, we will review Equity Group’s impressive profit of Ksh 34.6 billion, highlight the recent fines totaling Ksh 191 million imposed on 11 banks, and examine KeNHA’s decision to reject a US firm’s expressway proposal.

Equity Group has posted a 17% growth in Profit After Tax, reaching Ksh 34.6 billion, up from Ksh 29.6 billion for the period ended 30th June 2025.

The strong performance was driven by a 9% rise in net interest income and an 18% decline in interest expenses, while total costs fell by 2%, supported by a 34% drop in loan loss provisions.

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Equity’s loan book grew by 4% to Ksh 825.1 billion despite a challenging economic environment, while customer deposits rose 2% to Ksh 1.32 trillion, lifting total assets by 3% to Ksh 1.8 trillion.

Equity Group Half-Year Profit Hits Ksh 34.6 Billion

The bank’s subsidiaries recorded double-digit growth in profitability, with Tanzania leading the pack. In Kenya, profit after tax surged 40% to Ksh 19.5 billion, while the Democratic Republic of Congo subsidiary posted a 22% rise to Ksh 9.1 billion.

Tanzania led in growth rate with a 75% jump in earnings to Ksh 1.1 billion, as Uganda and Rwanda posted 40% and 21% gains in profit and assets, respectively.

The company’s regional footprint now accounts for nearly half of its deposits, loans, assets, and revenue, with 46% of profit before tax and 43% of profit after tax coming from outside Kenya.

The lender achieved its strongest quarterly performance in history with a Profit Before Tax of Ksh 22.9 billion in Q2 2025.

Equity Group Managing Director and CEO James Mwangi attributed the growth in profit to disruption in the bank’s business model and transformation.

“Ksh 22.9 billion is the highest quarterly profit we have ever made in the history of Equity. We have innovated a new Equity,” he said.

“This achievement wasn’t about optimizing the business we had but about disrupting our existing business model and completely transforming it.”

KeNHA Rejects US Firm’s Nairobi-Mombasa Expressway Proposal

The Kenya National Highways Authority (KeNHA) has announced that the Public-Private Partnership (PPP) Committee has rejected the privately initiated proposal by Everstrong Capital, a US-based infrastructure firm, for the construction of the Nairobi-Mombasa Usahihi Expressway.

The committee ruled that the proposal did not meet the required criteria for approval.

Following a thorough evaluation of the submitted documents, the PPP Committee, in consultation with the National Treasury and Economic Planning, found the proposal unsuitable and recommended that it be abandoned.

Instead, the committee has directed the contracting authority to revise the project by focusing on expanding the existing A8 highway.

This would involve expanding the existing Nairobi-Mombasa highway rather than building a completely new expressway.

The decision was made following a detailed review of the project report by the PPP Committee of the National Treasury and Economic Planning during its 54th Ordinary meeting held on July 2, 2025.

“The proposal may then be resubmitted to the Committee for a fresh determination in line with Section 43(12) of the PPP Act, 2021,” said KeNHA.

The mega road project was to be constructed under a PPP, covering a 459-km corridor from Mlolongo in Machakos County to Bonje in Mombasa County.

CBK Fines 11 Banks and Forex Bureaus Ksh 191M for Regulatory Breaches

The Central Bank of Kenya (CBK) has fined 11 commercial banks and forex bureaus a combined Ksh 191 million for violating lending, capital adequacy, and governance regulations.

The regulator’s 2024 Bank Supervision Annual Report shows that the penalties, equivalent to about USD 1.48 million, were collected in the year to June.

Although the number was down from 12 institutions fined in 2023, CBK warned that the figure still reflects persistent weaknesses in compliance.

“The banking sector must remain stable, resilient, and aligned with customer needs. We will not hesitate to enforce rules that protect the public and the integrity of the financial system,” CBK Governor Dr Kamau Thugge said in the report.

The enforcement actions follow legal reforms under the Business Laws (Amendment) Act, 2024, which took effect in December 2024. The new framework sets penalties at Ksh 20 million or three times the financial benefit gained or loss avoided by an institution’s breach.

The targeted breaches in 2024 included irregular lending practices that failed to comply with risk-based pricing models. Additionally, the banks were found guilty of capital adequacy shortfalls, where they did not maintain the statutory buffer.

KCB Tops List of 10 Largest Banks in Kenya by Market Share

The top 10 banks in Kenya control over 70% of the market, dominating deposits, assets, and shareholders’ funds, according to the Central Bank of Kenya’s 2024 Bank Supervision Annual Report.

KCB Bank Kenya Limited retained its position as the largest bank, holding a 16.6% market share and total net assets worth Ksh 1.28 trillion. It also leads in deposits at Ksh 988.5 billion and shareholders’ funds at 15.5%.

KCB serves the largest customer base in the industry, with 53.6 million deposit accounts and 1.43 million loan accounts.

Equity Bank Kenya Limited holds the second position with a 12.8% market share and assets worth Ksh1.03 trillion. The bank manages deposits totaling Ksh843.6 billion and 10.4% of shareholders’ funds, serving over 14.4 million deposit accounts and 844,445 loan accounts.

Co-operative Bank of Kenya Limited ranks third, with a 9.6% market share and total assets valued at Ksh 687.8 billion.

NCBA Bank Kenya PLC is fourth, holding an 8.3% market share and total assets worth Ksh 588.7 billion. The bank serves 3.3 million deposit accounts and more than 2.07 million loan accounts, strengthened by its strong digital banking presence.

Other leading banks include Absa, Stanbic, I&M Bank, Standard Chartered Bank Kenya, Diamond Trust Bank, and Prime Bank, all holding significant shares.

Equity Group Managing Director and CEO Dr James Mwangi in a past event. (Left), Co-op Bank MD & CEO Gideon Muriuki (Centre) and KCB Group CEO Paul Russo (Right). PHOTO/Equity Bank, Co-op Bank, KCB Bank.

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