Hello and welcome to today’s edition of The Business Roundup, where we bring you the latest updates on Kenya’s dynamic business landscape. In this edition, we dive into stories including KCB’s financial results and a CBK update on lending rates of different banks and other stories.
The Kenya Commercial Bank reported a 64.9% growth in its net earnings for the year ended December 2024.
In the results released on Wednesday, the bank announced that its net profit soared to Ksh61.8 billion for the full year from Ksh37.5 billion in 2023.
The growth, KCB reports, is attributed to a 24% rise in its revenue from increased interest. According to the bank, subsidiaries outside KCB Kenya contributed to 30% of the net profit.
Revenue from its subsidiaries grew by 16% to Ksh 73.28 billion to sum up the remarkable year for the largest bank in Kenya by assets.
Group CEO Paul Russo hailed the strong performance, stating its diversification of strategies had paid off.
What He Said:
The strong performance illustrates our resolve over the past 3 years to build an organisation for the future that is anchored on delivering value for our customers, shareholders, and all stakeholders
Windfall for KCB shareholders
Consequently, shareholders are set to enjoy Ksh9.6 billion dividends. KCB announced a dividend of Ksh1.5 per share, a relief for investors.
In Numbers
| Parameter | Figure | Growth in percentage |
| Total Assets | Ksh1.96 Trillion | -9.6% |
| Net Interest Income | Ksh137.3 billion | 28.0% |
| Profit After Tax | Ksh61.8 billion | 64.9% |
| Dividend per share (full) | Ksh3 | – |
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CBK Reveals Banks with Lowest & Highest Loan Interest Rates in 2025
The Central Bank of Kenya (CBK) published the average lending rates for commercial banks for January 2025.
In a statement issued on March 11, the CBK indicated that the overall average lending rate has decreased to 16.64 percent, down from 16.89 percent in December 2024.
As per the CBK’s report, Citibank N.A Kenya, Stanbic Bank Kenya Limited, and the Consolidated Bank of Kenya offer the lowest interest rates at 13.34 percent, 13.97 percent, and 13.34 percent, respectively.
Kingdom Bank Limited follows with a lending rate of 14.02 percent, while Guardian Bank Limited and Paramount Bank Limited have rates of 14.17 percent and 14.90 percent, respectively.
Standard Chartered Bank Kenya Limited has a lending rate of 15.00 percent, with UBA Kenya Bank Limited and Premier Bank Kenya Limited both at 15.07 percent.
Other institutions with rates slightly above 15 percent include Gulf African Bank Limited (15.45 percent), Bank of India (15.47 percent), Ecobank Kenya Limited (15.30 percent), and Habib Bank A.G Zurich (15.53 percent).
National Bank of Kenya Limited and Equity Bank Kenya Limited have lending rates of 16.04 percent and 16.08 percent, respectively. Co-operative Bank of Kenya Limited, Development Bank of Kenya Limited, and Diamond Trust Bank Kenya Limited report lending rates of 16.85 percent, 16.76 percent, and 16.54 percent, respectively.
Cabinet Approves Changes in Operation of SACCOs
And President William Ruto’s Cabinet has approved various changes to the Savings and Credit Cooperatives (SACCOs) Act.
A dispatch from the cabinet dated Tuesday, March 11, noted that these amendments will enhance stability, efficiency, and competitiveness in SACCOs.
The key reforms include the implementation of a SACCO Shared Services Framework.
This will enable financial institutions to pool resources, adopt financial technology (Fintech) solutions, and foster enhanced cooperation.
Despite this collaboration, each SACCO will still operate independently, meaning they will retain their separate management, decision-making, and internal processes.
At the same time, the introduction of a Central Liquidity Facility will enable SACCOs to easily engage in transactions with each other, access short-term loans, and participate in the National Payment System.
Additionally, the creation of a centralized data repository will streamline regulatory oversight by providing a single, efficient system for monitoring SACCO activities.
This will also improve overall operational efficiency by allowing better data management and reporting.
ALSO BIG THIS WEEK
- The Energy and Petroleum Regulatory Authority (EPRA) has announced that it will soon introduce additional prices on fuel prices. Speaking on March 12, EPRA Director General Daniel Kiptoo said the charges will cater for increasing costs shouldered by oil marketing companies and fuel transporters in Kenya.
- Mobius Motors Kenya Ltd has resumed operations months after announcing that it was closing down operations in the country. The assembler on Tuesday, March 11, said it had been acquired by Middle East-based company, Silver Box as it resumes operations.
- The Nation Media Group on Monday, February 13 appointed Geoffrey Odundo as its new Managing Director and Chief Executive Officer. NMG announced that his appointment will take place effective April 7, 2025.
- Mobile lender Whitepath was ordered to pay Sh250,000 in compensation to a complainant who claimed that he had been listed as a guarantor for a loan without his consent.
- Cabinet on March 11 directed the finalization of the construction framework and the groundbreaking of the 170km four-lane Rironi-Mau Summit Road by June 1, 2025. The project will upgrade the road from a two-way single-carriageway to a four-lane dual-carriageway, significantly improving traffic flow and enhancing connectivity across the country and the region, while driving economic growth.
- Energy products and services retailer OLA Energy on March 12 2025 announced the commencement of a strategic business restructuring process for its Kenyan subsidiary aimed at significantly enhancing its profitability and market share in the country over the next five years, which will result in mass job losses.
Tenders
Kenya Reinsurance Corporation Limited invited sealed tenders from eligible candidates for the following item for proposal for provision of digital, creative, design prints, photography, videography, media relations and monitoring consultancy services.
The Communications Authority of CA) invited firms interested in bidding for Open National Tender for Provision of Telecommunications Cellular Mobile Network Infrastructure and Services in the Unserved and Underserved areas of Kenya- Phase 4.
The Commission invites sealed tenders from eligible candidates to purchase disposable items.
Kenya Pipeline Company Limited invited tenders from eligible candidates for the following: Engineering, Procurement and Construction of Tanks and Inter-Tanks Flow Rate Enhancement for Western Kenya Depots
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