Kenya's banking sector experienced significant growth in 2025, with the gross loan book increasing from KSh 4.07 trillion in December 2024 to KSh 4.35 trillion by December 2025. This represents a 6.8% rise, according to the Central Bank of Kenya's Bank Supervision Annual Report 2025. The growth was driven by demand for credit in various sectors, including Personal and Household, Trade, Manufacturing, and Real Estate.
The top 10 lenders in Kenya collectively held KSh 3.61 trillion in gross loans, representing 83% of the entire sector's lending portfolio. KCB Bank Kenya led the pack, with its gross loan book surging from KSh 853.08 billion in December 2024 to KSh 1.01 trillion by the close of 2025. This figure alone represents 23.3% of the entire sector's gross lending.
Equity Bank Kenya ranked second with KSh 462.49 billion, although its portfolio contracted slightly from KSh 478.79 billion the prior year. Co-operative Bank of Kenya came in third at KSh 440.40 billion, up from KSh 399.95 billion. Absa Bank Kenya and NCBA Bank Kenya rounded out the top five with KSh 337.31 billion and KSh 303.89 billion, respectively.
The Central Bank of Kenya flagged four sectors where non-performing loans remain heavily concentrated: Trade, Real Estate, Manufacturing, and Personal and Household. These sectors accounted for 72.6% of all non-performing loans. The regulator noted that it would closely monitor these areas to ensure banks maintain adequate provisions against the risk of default.
Despite the non-performing loan pressures, Kenya's banking sector maintained a strong overall position. The total capital adequacy ratio reached 20.7% in December 2025, well above the regulatory minimum of 14.5%. Average liquidity stood at 59.3%, comfortably above the statutory floor of 20%.
Customer deposits grew 11.6% to KSh 6.12 trillion, and sector-wide profit before tax rose 17.7% to KSh 306.3 billion. Kenya's commercial banking sector recorded strong growth in 2025, with total net assets rising 10.3% to KSh 8.35 trillion.
In other news, the Central Bank of Kenya reclassified Standard Chartered Bank Kenya from the Tier One banking group after its market-share index fell to 4.5% in 2025 from 5.4% in 2024. KCB Bank Kenya retained the top position with a 17.3% market-share index, followed by Equity Bank at 11.8% and Co-operative Bank at 9.4%.
Key points
- The top 10 lenders in Kenya collectively held KSh 3.61 trillion in gross loans, representing 83% of the entire sector's lending portfolio.
- KCB Bank Kenya led the pack with a gross loan book of KSh 1.01 trillion, representing 23.3% of the entire sector's gross lending.
- The Central Bank of Kenya flagged four sectors where non-performing loans remain heavily concentrated: Trade, Real Estate, Manufacturing, and Personal and Household.
