KCB Group reported a 16% increase in earnings before tax to KSh34 billion, driven by robust performance across its regional operations. The bank’s expansion into East African markets showed significant gains, with Tanzania emerging as its most profitable subsidiary outside Kenya.
Tanzania’s operations recorded a 3989% surge in profit before tax, reaching KSh777 million compared to KSh19 million in 2017. This growth stemmed from heightened demand for business credit and a stable monetary environment, according to the bank. South Sudan’s earnings rose 17% to KSh664 million, attributed to economic improvements following a peace agreement, while Uganda saw a 59% increase to KSh446 million.
Burundi’s pre-tax profits jumped 102% to KSh220 million, but Rwanda’s operations declined by 25% to KSh424 million from KSh567 million in 2017. The bank plans to enter Ethiopia’s market, targeting the unbanked population of nearly 100 million. KCB’s CFO, Lawrence Kimathi, stated the lender aims to be the first Kenyan bank operational in Ethiopia, citing ongoing discussions for potential partnerships or a subsidiary in Addis Ababa.
