KENYA’S listed banks have posted a combined net profit of Sh240.1 billion for the year ended December 2024, setting a new record despite a tough economic environment, occasioned by increased bad loans.

The record performance, however, comes at a time that commercial banks reported a drop in lending last year.

The high interest rates saw Kenyans shy away from costly loans amid an economic downturn that limited their ability to borrow.

This comes despite the Central Bank of Kenya (CBK) reducing the base lending rate from 13 per cent in June last year to 10.75 per cent last month in anticipation that banks will pass on the benefits to their customers.

The banks’ earnings were however not impacted by the happenings in the fiscal space.

Among the top performers is KCB Group, which reported the highest net profit at Sh61.8 billion—representing a 64.9 percent jump from the previous year.

This saw the lender propose a total dividend of Sh3 per share, amounting to Sh9.6 billion in payouts. KCB Group Chairman Joseph Kinyua, maintained that despite the doubling of the profits the bank is continually ring-fencing its business by preserving capital and containing costs for long-term sustainability.

Source: The Star Newspaper