Banks in Kenya

Kenya has 44 banks; 31 are locally owned and 13 are foreign owned. The locally owned financial institutions comprise three banks with significant shareholding by the Government of Kenya and State Corporations, 27 commercial banks and one mortgage finance institution, Housing Finance.

There were two representative offices of foreign banks and five deposit-taking micro-finance institutions (DTMs). The sector recorded an accelerated 51.8 per cent growth in pre-tax profit during the year.

The banking sector’s profit before tax increased by 20.5 per cent from Kshs74.3 billion ($874.2 million) in December 2010 to Kshs89.5 billion ($105.3 million) in December 2011.

Net loans and advances recorded a growth of 31.4 per cent from Kshs876.4 billion ($10.3 billion) to Kshs 1.152 trillion ($13.6 billion) in December 2011. In 2010, bank lending as domestic credit was Kshs1.275 billion ($15 million); broad money supply rose by 21.6 per cent to Kshs1.272 billion ($14.9 million).

Total deposits and total assets held by financial institutions both recorded growth rates of 22.9 per cent and 24.1 per cent respectively.

The country’s banking sector has recorded exponential growth with bank branches rising from 534 as at December 2005 to more than 1,000 in 2011. The number of rural branches has grown by more than 150 per cent compared to over 70 per cent growth in urban areas over the same period, which has highly boosted financial inclusion in the country.

The Government has reformed banking to make it internationally competitive. In 2007, the Ministry of Finance proposed to raise bank capital from Sh250 million ($2.94 million) to Sh 1 billion ($11.8 million) by 2010. This deadline has since been pushed to 2012.

Foreign banks (Nigerian, South African and others) are investing in low-capital institutions. After the profit growth of the first five years of the Kibaki administration, bank expansion has since crossed borders to Tanzania, Rwanda, Southern Sudan, Mauritius and Uganda. Local banks such as Equity, KGB, Diamond Trust, l&M, ABC and Cooperative are present in the region.

The banking industry in Kenya as at December 2011 had 2,205 automated teller machines (ATMs), up from 1,979 in 2010, representing a 11.4 per cent increase.

A significant recent development in the banking sector has been the licensing of agent banking. As at the end of 2011, eight commercial banks had 9,748 licensed and active agents who facilitated more than eight million transactions worth Kshs43 billion ($506 million). Some 8,000 agents had been licensed in 2010, a factor that is widening the gap in financial access between Kenya and its East African Community partners.

In 2011, the banks’ total assets were worth Kshs1.5 trillion ($17.65) billion). Profit before tax was in excess of Kshs80 billion ($94.1 million). The Kenya Commercial Bank is the biggest, with risk-Weighted assets worth Kshs331 billion ($3.9 billion) in 2011.

Other major banks are Barclays, Equity, Standard Chartered, Co-perative, National and Citi.

Banks in Kenya

  1. ABC Bank
  2. African Banking Corporation
  3. African Development Bank
  4. Afrika Investment Bank
  5. Bank of Africa
  6. Bank of Baroda – Kenya
  7. Bank reforms in Kenya
  8. Central Bank of Kenya
  9. CfC Stanbic Bank
  10. CFC Stanbic Bank
  11. Chase Bank
  12. Citibank NA Kenya
  13. Commercial Bank of Africa
  14. Consolidated Bank
  15. Co-operative Bank
  16. Co-operative Bank of Kenya
  17. Development Bank Of Kenya Ltd
  18. Dubai Bank Kenya Ltd
  19. Dyer & Blair Investment Bank
  20. Equatorial Commercial Bank
  21. Equatorial Investment Bank
  22. Equity Bank
  23. Fidelity Bank
  24. Fina Bank
  25. Giro Commercial Bank
  26. Guardian Bank
  27. Guardian Bank
  28. Housing Finance
  29. I & M Bank
  30. Imperial Bank
  31. Integrity Company Ltd
  32. International Finance Corporation (IFC) – Kenya
  33. Jumuia Guest House
  34. KADET Ltd
  35. Kenya Commercial Bank – KCB
  36. K-Rep Bank
  37. Manam Infotech Pvt Ltd
  38. Metropolitan Teachers Sacco Ltd
  39. Mobikash Afrika Ltd
  40. Molyn Credit Ltd
  41. National Bank of Kenya
  42. NIC Bank
  43. Old Mutual Kenya
  44. Olympia Capital Holdings Ltd
  45. Oriental Commercial Bank Ltd.
  46. Paramount Bank
  47. PesaPot Holdings Limited
  48. Post Office Savings Bank – Kenya
  49. Prime Bank
  50. Standard Chartered Bank – Kenya
  51. Standard Investment Bank
  52. Sterling Investment Bank
  53. Suntra Investment Bank
  54. UBA Kenya Bank

About the Author

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