KCB Group shareholders walked away from the 2025 Annual General Meeting with a KSh 22.5 billion dividend approval, the largest payout in the bank’s history, as full-year net profit climbed to a record KSh 68.4 billion.
The total dividend of KSh 7.00 per share, a 133% jump from the prior year, combines an interim and special dividend of KSh 4.00 per share approved by the Board in November 2025, and a final dividend of KSh 3.00 per share approved at the AGM on Thursday. The final dividend, net of withholding tax, pays out on or about May 22, 2026, to shareholders on the register at the close of business on April 2, 2026.
Strong 2025 Performance Underpins the Payout
The dividend reflects a year of broad-based growth. Net profit rose 11% to a record KSh 68.4 billion, while total assets expanded 9% to KSh 2.1 trillion. Regional diversification continued to carry weight, with subsidiaries outside Kenya contributing 29.5% of overall net profit and accounting for 30.5% of total group assets.
Group Chairman Dr. Joseph Kinyua told shareholders the results affirmed the bank’s financial resilience. “As we look ahead to 2026, we remain cautiously optimistic about the outlook,” he said. “Despite the pressures in the operating environment, opportunities continue to emerge through regional integration, intra-African trade, infrastructure development, digital innovation, and the expanding role of the private sector in driving economic transformation.”
Group CEO Paul Russo pointed to the diversity of the business as a source of stability. “We are running a well-diversified business which sustains our resilience, leveraging our regional footprint and scale, customer confidence, and continued investment in digital transformation,” he said. “The business continues to benefit from strong momentum across key business segments, improved operational efficiency, and our deliberate focus on supporting businesses, SMEs, and households across the markets we operate in.”
Q1 2026: Growth Continues Against Rate Pressure
The momentum carried into the first quarter of 2026. KCB Group posted pre-tax profit of KSh 24.4 billion for the period, a 15.3% increase from KSh 21.2 billion in Q1 2025. Total operating income grew 8.5% to KSh 53.6 billion, driven by growth in interest-bearing assets, even as sustained rate cuts by regional regulators compressed asset yields and weighed on Net Interest Margin.
Key Q1 2026 financial metrics against Q1 2025
| Metric | Q1 2025 | Q1 2026 | Change |
|---|---|---|---|
| Total Assets (KSh bn) | 2,034.2 | 2,254.5 | +10.8% |
| Net Loans and Advances (KSh bn) | 1,018.6 | 1,208.2 | +18.6% |
| Customer Deposits (KSh bn) | 1,427.8 | 1,652.1 | +15.7% |
| Shareholders’ Funds (KSh bn) | 297.1 | 352.2 | +18.6% |
| Net Interest Income (KSh bn) | 33.7 | 36.6 | +8.6% |
| Non-Funded Income (KSh bn) | 15.7 | 17.0 | +8.3% |
| Total Operating Income (KSh bn) | 49.4 | 53.6 | +8.5% |
| Profit Before Tax (KSh bn) | 21.2 | 24.4 | +15.3% |
| Profit After Tax (KSh bn) | 16.5 | 18.2 | +10.0% |
| Core EPS (KSh) | 5.2 | 5.7 | +10.0% |
| Gross NPL Ratio | 19.9% | 15.9% | -4.0pp |
| Net Interest Margin | 8.2% | 8.5% | +0.3pp |
| Cost to Income Ratio | 57.2% | 54.5% | -2.7pp |
| Return on Average Equity | 23.4% | 21.6% | -1.8pp |
| Return on Average Assets | 3.1% | 3.3% | +0.2pp |
| Loan to Deposit Ratio | 71.3% | 73.1% | +1.8pp |
Asset quality improved notably. The gross non-performing loan ratio fell to 15.9% from 19.9% a year earlier, as gross loans grew 15% to KSh 1.37 trillion while gross NPLs declined 6.6% to KSh 217.8 billion. NPL coverage strengthened to 75.7% from 67.0%. The bank also cut its branch network from 536 to 458 locations, while deposits per branch rose 35.4% to KSh 3.6 billion, a sign that the rationalisation is working.
ESG and Green Finance
Beyond financial performance, KCB Group screened loans totalling KSh 587.8 billion in 2025 under its Environmental and Social Diligence framework, ensuring that lending decisions account for environmental and social risk before disbursement. Green loan disbursements reached KSh 48.8 billion for the year, reflecting the bank’s commitment to financing Kenya’s transition toward a lower-carbon economy.
Analysts currently rate KCB Group a “Buy” with a target price of KSh 83.2, representing a 24.6% upside from the May 22, 2026 closing price of KSh 66.8. The stock trades at a price-to-tangible book value of 0.6x and a price-to-earnings ratio of 3.1x, against industry averages of 1.1x and 5.7x respectively, suggesting the market has yet to fully price in the bank’s earnings recovery.
