Kenyan commercial banks posted a combined profit before tax of Ksh260 billion in 2024, with large lenders taking the lion’s share, new data shows.
Figures from the Central Bank of Kenya (CBK) 2024 Bank Supervision Annual Report reveal that nine large banks — with a weighted composite index of 5 percent and above —accounted for 89.3 percent of the total pre-tax profit in 2024, an increase from 84.7 percent recorded in 2023.
According to CBK’s commercial banks’ market share analysis, large banks earned Ksh232 billion in profit before tax last year.
They also controlled 75.6 percent of the market share, 65.41 percent of the industry’s total assets, and 69.31 percent of customer deposits.
CBK Reveals Kenyan Banks’ Share of Ksh260 Billion Profit in 2024
Medium-sized banks — with a weighted composite index between 1 percent and 5 percent- posted a profit before tax of Ksh27 billion, representing 10.38 percent of industry earnings.
The medium peer group proportion of total pre-tax profit decreased from 13.6 percent in 2023, to 10.2 percent in 2024
They commanded 16.7 percent of the market share, 16.39 percent of assets, and 16.48 percent of deposits.
Small banks — with a weighted composite index of less than 1 percent — remained the largest group by number at 21 institutions but contributed the least to the sector’s profitability.
They made just Ksh1 billion in profit before tax, a decrease from 1.7 percent in 2023, to 0.5 percent in 2024.
The banks held a market share of 7.7 percent, 8.09 percent of assets, and 7.73 percent of deposits.
Total deposits decreased by 1.5 percent to Ksh.5.8 trillion in December 2024, from Ksh.5.9 trillion in December 2023.
Also Read: CBK Fines 11 Banks Ksh191 Million for Breaking the Law
Market Share
There were shifts in the market share positions of banks in the medium and small peer groups between December 2023 and December 2024.
Banks in the large peer group saw their combined market share decline to 75.6 percent in December 2024, from 76.6 percent in December 2023.
The combined market share of banks in the medium peer group rose to 16.7 percent in December 2024, from 15.0 percent in December 2023.
This was due to the entry of HFC Ltd into the medium peer group from the small peer group.
Banks in the small peer group recorded a combined market share of 7.7 percent in December 2024, down from 8.4 percent in December 2023, following the exit of HFC Ltd to the medium peer group.
In 2024, the banking sector capital and reserves increased by 20.7 percent to Ksh.1,183.0 billion in December 2024, from Ksh980.2 billion in December 2023.
Large and medium-sized peer groups registered increased capital and reserves. The increase in capital and reserves is attributable to additional capital injections by commercial banks as well as retained earnings from the profits realized in the year.
Also Read: Why Kenyan Banks Want CBK to Lower Lending Rates Further
Profit Before Tax and Total Assets
The banking sector registered an increase in profitability in 2024, with profit before tax increasing by Ksh41.0 billion (18.2 percent) from Ksh219.2 billion in December 2023 to Ksh260.0 billion in December 2024.
The increase in profitability was attributed to a higher increase in total income (Ksh50.1 billion) compared to the increase in total expense (Ksh9.1 billion).
The total net assets in the banking sector stood at Ksh7.6 trillion as at December 31, 2024, compared to Ksh7.7 trillion as at December 2023, recording a slight decline of 1.6 percent.
There were 20 operating local private commercial banks and 2 operating local public commercial banks, which accounted for 69.4 percent and 0.5 percent of total net assets, respectively.
A total of 17 operating commercial banks were foreign-owned and accounted for 30.1 percent of the sector’s assets.
Follow our WhatsApp Channel and X Account for real-time news updates.
