Report Coverage
This report on financial services in Kenya includes information on the central bank, commercial banks, bank representative offices, microfinance banks, merchant banking, co-operative banks and development finance institutions. There is information on the size and state of the industry, including banking financials, non-performing loans, mobile money and diaspora remittances and fintech companies. The report includes notable players, corporate actions and developments such as new minimum core capital requirements. There are profiles of 62 companies such as the central bank, major banks such as Absa, KCB, NCBA, I&M, Equity Bank and Diamond Trust Bank, microfinance banks such as Suma, Faulu and Salaam, and SACCOs such as TAI Sacco Society.
Introduction
• Kenya is regarded as the largest economy in East Africa, and its financial services sector plays a significant role in the region and in the country’s economy.
• The banking sector is highly competitive and characterised by the presence of local and foreign players.
• There are 39 licensed commercial banks, and 15 are more than 50% foreign-owned.
• The banking sector is dominated by Tier 1 large banks.
• Total banking assets and pre-tax profits increased marginally in 2024.
• Challenges include high operational costs, high non-performing loan ratios, cybersecurity risks and customers demanding more digital and personalised services.
Trends
• A significant increase in the adoption of digital technology due to demand for digital banking channels. This has resulted in an increase in licensed digital providers and growth of digital credit.
• Collaboration between traditional financial institutions and fintech companies are becoming common.
• Expansion by local banks into Uganda, Rwanda, Tanzania and Côte d’Ivoire.
• Financial institutions are increasing their focus on SMEs financing.
• Financial institutions are venturing into sustainable finance focusing on green financing.
• Increased investment in cybersecurity measures to protect financial institutions’ infrastructure and customers’ data.
• Kenya’s financial sector is becoming increasingly integrated with global financial markets.
• Several regulatory changes such as new core capital requirements aimed at improving stability and security of the banking sector.
• Significant progress in financial inclusion through expanding mobile money, fintechs and affordable banking products.
• The rise in fintechs, increasing competition with traditional and microfinance banks.
• There is a noticeable shift towards cashless transactions driven by the convenience accessibility and security of digital payments.
• There is significant growth in diaspora remittances.
Opportunities
• Bancassurance is creating opportunities for sales and product development roles.
• Digital banking and fintech, including mobile money and virtual banking solutions.
• Financial institutions are focusing on improving customer experience, leading to opportunities in relationship management, customer service and marketing.
• Inclusive banking to cater for the unbanked and underbanked areas and expanding access to finance for SMEs.
• There is growing demand for banks to invest in green projects.
• With increasing regulations, there is need for professionals with expertise in compliance, anti-money laundering and financial crime prevention.
Challenges
• A shortage of skilled professional in digital technology.
• A significant portion of the population remains unbanked, particularly in rural areas.
• Consumers are demanding more digital and personalised services putting pressure on banks to adapt.
• Fintechs have to navigate a complex regulatory landscape.
• Kenya is prone to frequent droughts and floods which cause significant damage to banks’ infrastructure and physical assets.
• Microfinance institutions are highly vulnerable to instability and economic pressures.
• Regulatory changes can impact operations and profitability.
• The non-performing loans ratio has been on the rise, reflecting economic pressures and impacting asset quality.
• The rise of fintech companies is disrupting traditional banking models and creating challenges for established Kenyan financial institutions.
• The traditional banking sector faces increasing competition from fintechs and other non-traditional financial institutions.
• Vulnerability to cyberattacks, which comprise financial data and disrupt operations.
Outlook
• The Kenyan banking sector is projected to remain stable and resilient.
• Favourable macroeconomic conditions are expected to encourage private sector lending, which will drive growth in loans.
• Non-performing loans are expected to remain high in the near term due to significant public-sector spending and extended loan repayment periods.
• New minimum core capital requirements may result in risks for smaller banks.
• Increasing adoption of mobile money and a young tech-savvy population will drive the growth of fintechs.
Financial Services in Kenya
2025
Full Report
R 20 000.00(ZAR) estimated $1124.84 (USD)*
Industry Landscape
R 14 000.00(ZAR) estimated $ 787.39 (USD)*
Historical Reports
Financial Services in Kenya 2021-11-18
R 1 900.00(ZAR) estimated $106.86 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | COUNTRY INFORMATION | 1 |
| 3. | DESCRIPTION OF THE INDUSTRY | 3 |
| 3.1. | Industry Value Chain | 9 |
| 3.2. | Geographic Position | 10 |
| 3.3. | Size of the Industry | 11 |
| 4. | LOCAL | 13 |
| 4.1. | State of the Industry | 13 |
| 4.2. | Key Trends | 22 |
| 4.3. | Key Issues | 23 |
| 4.4. | Notable Players | 23 |
| 4.5. | Corporate Actions | 27 |
| 4.6. | Regulations | 28 |
| 4.7. | Enterprise Development and Social Development | 29 |
| 5. | AFRICA | 30 |
| 6. | INTERNATIONAL | 34 |
| 7. | INFLUENCING FACTORS | 37 |
| 7.1. | Unforeseen Events | 37 |
| 7.2. | Economic Environment | 37 |
| 7.3. | Labour | 40 |
| 7.4. | Environmental Issues | 41 |
| 7.5. | Technology, R&D, Innovation | 43 |
| 7.6. | Government Support | 44 |
| 7.7. | Mobile Devices | 45 |
| 7.8. | Input Costs | 45 |
| 7.9. | Cybersecurity | 45 |
| 8. | COMPETITIVE ENVIRONMENT | 47 |
| 8.1. | Competition | 47 |
| 8.2. | Ownership Structure of the Industry | 47 |
| 8.3. | Barriers to Entry | 47 |
| 9. | INDUSTRY SUMMARY | 48 |
| 10. | OUTLOOK | 49 |
| 11. | INDUSTRY ASSOCIATIONS | 50 |
| 12. | REFERENCES | 50 |
| 12.1. | Publications | 50 |
| 12.2. | Websites | 51 |
| ANNEXURE 1 | 53 | |
| Relevant Legislation | 53 | |
| APPENDIX 1 | 54 | |
| Summary of Notable Players | 54 | |
| COMPANY PROFILES | 61 | |
| ABSA BANK KENYA PLC | 61 | |
| ACCESS BANK (KENYA) PLC | 69 | |
| AFRICAN BANKING CORPORATION LTD | 72 | |
| BANK OF AFRICA KENYA LTD | 75 | |
| BANK OF BARODA (KENYA) LTD | 78 | |
| BANK OF INDIA KENYA (KENYA BRANCH OF BANK OF INDIA) | 81 | |
| BRANCH MICROFINANCE BANK LTD | 83 | |
| CARITAS MICROFINANCE BANK LTD | 85 | |
| CENTRAL BANK OF KENYA | 87 | |
| CHOICE MICROFINANCE BANK LTD | 91 | |
| CITIBANK KENYA (KENYA BRANCH OF CITIBANK N.A.) | 93 | |
| CO-OPERATIVE BANK OF KENYA LTD (THE) | 95 | |
| COMMERCIAL INTERNATIONAL BANK KENYA LTD | 101 | |
| CONSOLIDATED BANK OF KENYA LTD | 104 | |
| CREDIT BANK PLC | 107 | |
| DEVELOPMENT BANK OF KENYA LTD | 110 | |
| DIAMOND TRUST BANK KENYA LTD | 113 | |
| DIB BANK KENYA LTD | 118 | |
| ECOBANK KENYA LTD | 121 | |
| EQUITY BANK (KENYA) LTD | 124 | |
| FAMILY BANK LTD | 127 | |
| FAULU MICROFINANCE BANK LTD | 133 | |
| GUARANTY TRUST BANK (KENYA) LTD | 136 | |
| GUARDIAN BANK LTD | 139 | |
| GULF AFRICAN BANK LTD | 142 | |
| HABIB BANK KENYA (KENYA BRANCH OF HABIB BANK AG ZURICH) | 145 | |
| HFC LTD | 147 | |
| I&M BANK LTD | 150 | |
| ILAM FAHARI I-REIT | 155 | |
| JUNCTION FOREX AND MONEY REMITTANCE LTD | 158 | |
| KCB GROUP PLC | 159 | |
| KENYA WOMEN MICROFINANCE BANK PLC | 162 | |
| KIMISITU DT SACCO SOCIETY LTD | 166 | |
| KINGDOM BANK LTD | 168 | |
| LOLC KENYA MICROFINANCE BANK PLC | 172 | |
| M-ORIENTAL BANK LTD | 175 | |
| MIDDLE EAST BANK KENYA LTD | 178 | |
| MUUNGANO MICROFINANCE BANK PLC | 181 | |
| MWALIMU NATIONAL COOPERATIVE SAVINGS AND CREDIT SOCIETY LTD | 184 | |
| NCBA GROUP PLC | 187 | |
| ON IT MICROFINANCE BANK LTD | 190 | |
| PARAMOUNT BANK LTD | 192 | |
| PREMIER BANK KENYA LTD | 195 | |
| PRIME BANK LTD | 198 | |
| RAFIKI MICROFINANCE BANK LTD | 201 | |
| RENTWORKS EAST AFRICA LTD | 204 | |
| SALAAM MICROFINANCE BANK LTD | 205 | |
| SBM BANK (KENYA) LTD | 207 | |
| SIDIAN BANK LTD | 211 | |
| SIMBA CORPORATION LTD | 214 | |
| SMEP MICROFINANCE BANK PLC | 217 | |
| STANBIC BANK KENYA LTD | 221 | |
| STANDARD CHARTERED BANK KENYA LTD | 225 | |
| STANDARD INVESTMENT BANK LTD | 230 | |
| STIMA DT SACCO SOCIETY LTD | 233 | |
| SUMAC MICROFINANCE BANK LTD | 236 | |
| TAI SACCO SOCIETY LTD | 240 | |
| U & I MICROFINANCE BANK LTD | 242 | |
| UBA KENYA BANK LTD | 245 | |
| UMBA MICROFINANCE BANK LTD | 248 | |
| VEHICLE AND EQUIPMENT LEASING LTD | 250 | |
| VICTORIA COMMERCIAL BANK LTD | 252 |
