Kenya's banking sector experienced a remarkable recovery in 2021, with pre-tax profit jumping to 78.5 percent. This growth is attributed to the economy's rebound from the Covid-19 pandemic.
According to the Central Bank of Kenya's (CBK) annual report for 2021, the banking sector's profit before tax reached 197 billion shillings, a significant increase from 121.7 billion shillings in 2020.
CBK Governor Patrick Njoroge noted that the banking sector's asset base grew by 11 percent to 6 trillion shillings in 2021, from 5.4 trillion shillings in 2020.
The report highlights the dominance of large banks in the sector, with nine banks controlling 74.76 percent of the market share, followed by eight medium banks with 16.41 percent, and 22 small banks with 8.82 percent.
Equity Bank Group became the first bank to cross the Ksh1 trillion mark after acquiring Banque Commerciale Du Congo (BCDC) in December 2020, surpassing KCB Group as the largest bank in Kenya in terms of asset value.
Co-op Bank, which acquired Jamii Bora two years ago and renamed it Kingdom Bank, saw its total assets grow to 597 billion in the first three months of this year, an eight percent increase from 552.9 billion in the same period last year.
The report also notes that the country has 20 operating local private commercial banks and two local public commercial banks, which accounted for 68.3 percent and 0.5 percent of total net assets respectively. Foreign-owned banks, on the other hand, accounted for 31.2 percent of the sector's assets.
CBK projects the sector to remain resilient in 2022, as banks continue supporting the post-Covid economic recovery.
