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The Banking Industry in Kenya
BY Louise Mitchell
Kenya
13 November 2019
R 14 400.00 (ZAR)  
estimated $ 997.05 (USD) *
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The Banking Sector in Kenya


Kenya’s financial sector is well developed although the country is considered overbanked with 40 registered banks. The market is highly concentrated with the 12 listed commercial banks owning 89% of the total assets in 2018. Commentators view the industry as well capitalised and performance is steadily picking up momentum since the market shock of 2016 when the government introduced capped interest rates that discouraged savings, reduced private sector and SME access to credit and impeded banking sector competition, particularly by reducing smaller banks’ profitability. Innovations such as agent banking, which allows commercial banks and microfinance banks to engage the services of third party outlets to deliver specified financial services on their behalf, have improved financial inclusion in rural and urban areas.


Mobile Money


Mobile financial services are the preferred method to access financial services and are used by almost 80% of the adult population. There are more than 20 digital credit services in Kenya, and new services continue to come on stream. Mobile money services include M-Pesa, M-Shwari, Airtel Money, Orange/Telkom Money, Equitel Money, Mobikash and Tangaza, with M-Pesa having the bulk of the market share in terms of active subscribers, number of transactions, and value of transactions. Total mobile money transactions in Kenya reached US$38.5bn in 2018, and the total number of mobile money accounts in Kenya reached 45.43 million.


Report Coverage


The report on the Kenyan banking industry covers deposit-taking institutions which include other credit granting, lease financing, and loyalty and reward programmes, as well as central banking. The report includes information on the size and state of the industry, its major players and specific areas of interest such as mobile and Islamic banking. There are profiles of 37 companies including major players such as Equity Bank and the Co-operative Bank of Kenya and Barclays, which is set to complete its rebranding to Absa by 2020. Profiles also include those of Key Microfinance Bank, which changed its name from Remu Microfinance Bank, and international banks Citibank and Bank of India.


Page
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 8
4. SIZE OF THE INDUSTRY 8
5. STATE OF THE INDUSTRY 12
5.1. Local 12
5.1.1. Corporate Actions 17
5.1.2. Regulations 19
5.1.3. Enterprise Development and Social Economic Development 22
5.2. Continental 23
5.3. International 30
6. INFLUENCING FACTORS 32
6.1. Economic Environment 32
6.2. Financial Inclusion 33
6.3. Operating Costs 34
6.4. Information Technology (IT), Research and Development (R&D) and Innovation 35
6.5. Labour 36
6.6. Cybercrime and Fraud 37
7. COMPETITION 38
7.1. Barriers to Entry 39
8. SWOT ANALYSIS 39
9. OUTLOOK 41
10. INDUSTRY ASSOCIATIONS 41
11. REFERENCES 42
11.1. Publications 42
11.2. Websites 42
APPENDIX 1 44
Summary of Notable Players 44
COMPANY PROFILES 48
AFRICAN BANKING CORPORATION LTD 48
BANK OF AFRICA KENYA LTD 51
BANK OF BARODA (KENYA) LTD 54
BANK OF INDIA 57
BARCLAYS BANK OF KENYA LTD 61
CARITAS MICROFINANCE BANK LTD 69
CENTRAL BANK OF KENYA 71
CITIBANK N.A. 74
CO-OPERATIVE BANK OF KENYA LTD (THE) 77
COMMERCIAL BANK OF AFRICA LTD 83
DIAMOND TRUST BANK KENYA LTD 87
ECOBANK KENYA LTD 92
EQUITY BANK (KENYA) LTD 95
FAMILY BANK LTD 97
FAULU MICROFINANCE BANK LTD 103
GUARANTY TRUST BANK KENYA LTD 105
GULF AFRICAN BANK LTD 108
HFC LTD 111
I&M BANK LTD 113
KCB GROUP PLC 117
KENYA WOMEN MICROFINANCE BANK PLC 121
KEY MICROFINANCE BANK PLC 125
NATIONAL BANK OF KENYA LTD 127
NIC GROUP PLC 133
PRIME BANK LTD 138
RENTWORKS EAST AFRICA LTD 142
SBM BANK (KENYA) LTD 143
SIDIAN BANK LTD 146
SIMBA CORPORATION LTD 149
SMEP MICROFINANCE BANK LTD 152
STANBIC BANK KENYA LTD 155
STANDARD CHARTERED BANK KENYA LTD 159
SUMAC MICROFINANCE BANK LTD 164
UBA KENYA BANK LTD 167
UWEZO MICROFINANCE BANK LTD 169
VEHICLE AND EQUIPMENT LEASING LTD 171
VICTORIA COMMERCIAL BANK LTD 173