KCB Group's 2024 profit surged 64.9% to KES 61.8B, driven by strong revenue growth, digital expansion, financial inclusion, and sustainability efforts.

KCB Group Plc has reported a significant 64.9% increase in its net profit for the full year 2024, reaching KES 61.8 billion, up from KES 37.5 billion recorded in the previous year. The financial growth was driven by strong revenue expansion across all business segments, despite a challenging economic environment.

The Group’s total revenues rose by 24.0% to KES 204.9 billion, bolstered by higher interest income and gains from foreign exchange trading. The balance sheet closed the year at KES 1.96 trillion, supported by a strong deposit base and stable loan portfolio.

Dividend Payout & Financial Highlights

The KCB Group Board has proposed a final dividend of KES 1.50 per share, bringing the total annual dividend to KES 3.00 per share, amounting to KES 9.6 billion. This follows an interim dividend of KES 1.50 per share paid out in September 2024.

Key financial highlights for 2024 include:

Net interest income grew by 28.0%, driven by strong lending activity.
Non-funded income contributed 33.0% of total revenues, mainly from fees, commissions, and forex trading.
Operating costs increased by 11.8% to KES 92.9 billion, influenced by staff costs, inflation, and technology investments.
Provision for credit losses decreased by 11.0%, helped by improved asset quality and a stronger Kenya shilling.
Gross non-performing loans (NPLs) stood at KES 225.7 billion, with an NPL ratio of 19.2%.
Customer deposits reached KES 1.4 trillion, while loans and advances stood at KES 990.4 billion.
Return on equity (ROE) improved to 24.6%, up from 17.8% in 2023.
Group total equity grew by 20.8% to KES 274.9 billion.
Capital buffers remained strong, with core capital at 16.8% and total capital at 19.4%, above regulatory minimums.

CEO & Chairman Commentary

KCB Group CEO Paul Russo highlighted the Group’s customer-centered value propositions and technology-driven innovations as key to its growth.

“The strong performance illustrates our resolve over the past three years to build an organization for the future that delivers value for our customers, shareholders, and all stakeholders. Our focus is on ensuring we have fit-for-purpose technology that provides seamless, reliable, and innovative solutions,” said Russo.

KCB Group Chairman Dr. Joseph Kinyua emphasized economic resilience and sustainability as core priorities for the bank.

“We are optimistic about economic recovery in our markets, supported by key service sectors and agriculture. We continue to prioritize capital preservation and cost management for long-term sustainability. Embedding environmental, social, and governance (ESG) priorities will remain crucial in 2025,” Kinyua stated.

Strategic and Corporate Developments

1. Expansion in Digital Banking

KCB is set to launch an enhanced mobile banking platform across Kenya, Tanzania, South Sudan, and Burundi, aimed at improving customer experience and addressing existing service challenges.

2. Green Finance & Financial Inclusion

KCB Bank secured a $100 million Tier 2 capital facility from British International Investment (BII) to fund climate-related projects and support women-led SMEs. The bank set aside KES 250 billion over five years to finance women entrepreneurs, with KES 150 billion already disbursed.

3. Cross-Border Trade & Partnerships

KCB Group integrated the Pan-African Payment and Settlement System (PAPSS), facilitating faster cross-border transactions and reducing forex costs.

The bank secured a €230 million (KES 32 billion) partnership with European Investment Bank (EIB Global) to support SMEs, youth, and women in Kenya.

KCB obtained Green Climate Fund (GCF) approval to finance small businesses focused on sustainability.

4. Sale of National Bank of Kenya

KCB Group signed a binding offer with Access Bank Plc for the 100% acquisition of National Bank of Kenya (NBK). The transaction is pending final regulatory approvals.

Sports & Community Investments

KCB launched the East Africa Golf Tour Series covering Kenya, Uganda, Tanzania, Rwanda, and Burundi.
The bank renewed its partnership as the official financial partner for the 2025 Safari Rally and is sponsoring four Kenyan drivers.
KCB launched “Revvisha na KCB”, a savings campaign offering prizes including land at Vipingo Model City.

Outlook for 2025

KCB Group remains optimistic about economic recovery, expecting growth in private sector credit, improved exports, and stronger capital preservation. The Group plans to enhance financial inclusion, expand digital services, and drive ESG integration as part of its 2024–2026 strategy.

Conclusion

KCB Group’s record profit growth, strong balance sheet, and aggressive expansion strategy signal a solid financial position despite economic uncertainties. The bank’s focus on technology, financial inclusion, and sustainability is expected to drive continued growth in 2025.