10 Kenyan banks that made the most money in 2025, did yours make the list?

Kenya’s largest banks are making more money than ever, even as households and businesses strain under high borrowing costs, rising prices, and tighter access to credit.

Financial disclosures and latest available filings show that Tier 1 banks, lenders with assets above Sh 250 billion as defined by the Central Bank of Kenya, delivered strong profit growth into 2025, driven by high interest income, digital expansion, and regional diversification.

But behind the numbers lies a growing tension: are banks thriving while their customers struggle?

Kenya currently has six widely recognised Tier 1 banks: KCB Group, Equity Group Holdings, Co-operative Bank of Kenya, NCBA Group, Absa Bank Kenya, and Standard Chartered Bank Kenya.

KCB Group remains one of Kenya’s largest and most profitable banks, with strong earnings supported by its extensive East African operations

At the same time, Equity Group Holdings continues to post the fastest growth, driven by aggressive digital banking strategies and expansion into markets such as the DRC and Rwanda. The bank is also looking into expanding into Ethiopia through an acquisition.

High interest rates doing the heavy lifting

The biggest driver is the elevated cost of borrowing. The Central Bank of Kenya maintained a tight monetary stance through 2024–2025, keeping the Central Bank Rate high to manage inflation and stabilise the currency.

This environment has allowed banks to widen their interest margins significantly. Loans are more expensive for customers, but far more profitable for lenders.

Government borrowing crowding out private sector

Banks are increasingly allocating funds to government securities such as Treasury bills and bonds. These instruments offer attractive, low-risk returns compared to private sector lending.

As a result, credit to businesses, especially SMEs, has remained constrained, even as banks continue to report strong earnings.

Digital banking scaling profits affordably

Institutions like Equity Group Holdings and NCBA Group have turned digital platforms into major revenue drivers.

Mobile lending, app-based transactions, and agency banking have lowered operational costs while increasing transaction volumes, boosting both fee income and efficiency.

Regional expansion cushioning local shocks

For banks such as KCB Group and Equity Group Holdings, growth is no longer tied solely to Kenya.

Their regional subsidiaries provide diversified income streams, helping offset domestic economic pressures and sustaining overall profitability.

Cost-cutting and restructuring

Across the sector, banks have streamlined operations through branch rationalisation, workforce optimisation, and increased automation.

These efficiency measures have improved cost-to-income ratios and contributed to stronger bottom lines.

Are banks winning while customers lose?

A clear disconnect is emerging. Banks are reporting near-record profits and delivering strong returns to shareholders, yet many Kenyans are grappling with a high cost of living and limited access to affordable credit.

At the same time, loan defaults are rising in certain sectors, reflecting growing financial strain among borrowers.

Kenya’s broader economic environment helps explain this divergence. Inflation has eased but continues to affect household purchasing power. Interest rates remain elevated, keeping borrowing costs high, while GDP growth has been steady but uneven in its impact.

Many analysts note that banks are responding rationally to risk, pricing loans accordingly and favouring safer investments. However, this approach has the side effect of tightening credit conditions for ordinary businesses and consumers.

Kenya’s Tier 1 banks are not just resilient, they are thriving in a high-rate environment.

Their profitability is increasingly driven by interest income, government lending, digital scale, and regional diversification rather than expanded access to credit.

That raises a critical question for policymakers and regulators: can a banking sector remain sustainable if its strongest performance coincides with growing financial pressure on the very customers it serves?