Kenyan Banking Giants See Market Share Erode as Mid-Sized Lenders Surge, CBK Report Reveals

Kenyan banking giants saw their collective market share drop to 69.7% in December 2025, while mid-sized lenders expanded to 23.2%, according to the Central Bank of Kenya's (CBK) annual report.

Nyakundi Report

Newsroom 25 September 2026 3 min read

Primary source BusinessDay Nigeria

Kenyan banking giants saw their collective market share drop to 69.7% in December 2025, while mid-sized lenders expanded to 23.2%, according to the Central Bank of Kenya's (CBK) annual report. The shift, detailed in the Bank Supervision Annual Report, reflects a broader competitive landscape as medium-sized banks grew their assets, deposits, capital, and profits, challenging traditional industry leaders. The report revealed that the combined market share of large banks fell from 75.6% in 2024 to 69.7% in 2025, while medium-sized lenders increased their share from 16.7% to 23.2%. This change was partly driven by reclassifications: Standard Chartered Bank Kenya moved from the large-bank category to mid-sized, and Sidian Bank shifted from small to medium. The CBK classifies banks based on a weighted index of net assets, deposits, capital, and loan accounts, with large banks requiring a market-size index of at least 5%. KCB Bank Kenya remained the largest lender with a 17.3% market-size index, followed by Equity Bank Kenya (11.8%), Co-operative Bank of Kenya (9.4%), and NCBA Bank Kenya (7.9%). Absa Bank Kenya ranked fifth with 6.4%, while Stanbic Bank Kenya (5.8%) and I&M Bank and Diamond Trust Bank Kenya (each 5.6%) rounded out the top six. Standard Chartered’s index fell to 4.5%, dropping below the 5% threshold for large banks, a decline from 6.37% in 2019. Medium-sized banks saw significant growth in balance sheets, with combined net assets rising from KSh1.24 trillion ($9.6 billion) in 2024 to KSh1.84 trillion ($14.2 billion) in 2025. Their deposits grew to KSh1.39 trillion ($10.7 billion), up from KSh958 billion ($7.4 billion), while capital and reserves increased to KSh368 billion ($2.9 billion) from KSh209 billion ($1.6 billion). This expansion bolstered their lending capacity and competitiveness against larger institutions. Profitability also shifted in favor of mid-sized lenders, whose combined pre-tax profits more than doubled to KSh58 billion ($450 million) in 2025, compared to KSh27 billion ($209 million) in 2024. Large banks, meanwhile, saw a modest rise in pre-tax profits from KSh232 billion ($1.8 billion) to KSh241 billion ($1.9 billion). As a result, mid-sized banks’ contribution to total industry profits rose to 19% from 10.4%, while large banks’ share fell to 78.8% from 89.2%. Kenya’s banking sector expanded overall, with total net assets reaching KSh8.35 trillion ($64.7 billion) in December 2025, up 10.3% from the previous year. Customer deposits rose 11.6% to KSh6.12 trillion ($47.4 billion), and industry-wide pre-tax profits increased 17.7% to KSh306.3 billion ($2.37 billion). The CBK attributed the growth to a sharper decline in expenses than income, with costs falling by KSh67.4 billion ($522 million) compared to a KSh21.5 billion ($167 million) drop in revenue. Despite the shifts, large banks still dominated the market, accounting for 69% of the sector and 79% of pre-tax profits. However, the report highlighted a more competitive landscape, with mid-sized lenders gaining scale and profitability faster than traditional giants. The CBK described the sector as stable, with a capital adequacy ratio of 20.7% and a liquidity ratio of 59.3%, both well above regulatory requirements. Small banks’ market share declined to 7.1%, while their numbers fell from 21 to 20, partly due to Sidian Bank’s reclassification.

Kenyan Banking Giants See Market Share Erode as Mid-Sized Lenders Surge, CBK Report Reveals

Banking, Kenya, CBK, Financial Sector, Market Share, Mid-Sized Banks

Kenyan banking giants lost market share to mid-sized lenders in 2025, according to the Central Bank of Kenya's annual report, which highlights a shift in industry dynamics and growing competition.

https://www.nyakundi.com/kenyan-banking-giants-market-share

https://www.nyakundi.com/kenyan-banking-sector-growth

https://www.nyakundi.com/kenya-cbk-annual-report

https://www.nyakundi.com/kenya-banking-industry-2025

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