Kenya’s banking industry recorded a profit before tax of KSh 83.5 billion in the first quarter of 2026, marking a 13.6% increase from the same period last year, while total assets climbed to an all-time high of KSh 8.73 trillion.
The strong performance signals a continued recovery for the sector following a challenging 2023-2024 period characterised by high non-performing loans and pressure on balance sheets.
The Q1 pre-tax profit figure for Kenya-based banking entities more than doubled from KSh 45.9 billion reported in the first quarter of 2021. The growth has been supported by the removal of interest rate caps, easing of post-pandemic loan-loss provisions and a period of elevated interest rates that boosted lenders’ margins before the recent monetary easing cycle.
The data reflects the performance of banks operating within Kenya and excludes earnings from regional subsidiaries.
Among lenders, KCB Bank Kenya remained the largest by assets and profitability. Its asset base increased to KSh 1.55 trillion from KSh 1.33 trillion a year earlier, while pre-tax profit rose 21.4% to KSh 17.63 billion.
Equity Bank Kenya reported a 20.9% jump in pre-tax earnings to KSh 11.93 billion from KSh 9.87 billion, with total assets surpassing the KSh 1 trillion mark to reach KSh 1.05 trillion.
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Co-operative Bank posted a pre-tax profit of KSh 9.81 billion, up 13.4% from KSh 8.65 billion, as assets expanded to KSh 813.91 billion from KSh 712.48 billion. Collectively, the three banks hold nearly 39% of the sector’s total assets.
Loan growth remained robust across the industry, with seven of the eight listed tier-one lenders expanding their lending portfolios by between 13% and 20% during the quarter. The growth has been aided by the Central Bank of Kenya’s cumulative 400-basis-point reduction in its benchmark rate since 2024, which stood at 8.75% by March 2026.
Despite the positive momentum, concerns over asset quality persist. While some banks have reported improvements in non-performing loans, sector-wide NPL levels remain high. Analysts caution that rapid asset expansion without corresponding improvements in credit quality could revive provisioning pressures that previously weighed on profitability.
