Kenya’s banking sector remained well-capitalized and strongly positioned to support economic growth in the year 2024. According to the State of the Banking Industry Report 2025, released by the Kenya Bankers Association (KBA) yesterday, the sector maintained capital adequacy ratios well above regulatory requirements in 2024, underscoring its resilience and capacity to finance inclusive development.
The report shows that the Total Capital-to-Risk Weighted Assets ratio stood at 19.7% in 2024, against a regulatory minimum of 14.5%, while the Core Capital-to-Risk Weighted Assets ratio stood at 17.4%, comfortably above the 10.5% threshold. This strong capital base, coupled with stable liquidity levels, positions banks to expand lending sustainably in support of households, businesses, and the wider economy.
Speaking during the launch, Kenya Bankers Association Chief Finance Officer, Mr Kennedy Mutisya, said the year 2024 underscored the resilience of Kenya’s banking sector and its capacity to play a catalytic role in our country’s economic transformation.
‘’Strong capitalisation, robust liquidity, and enhanced efficiency demonstrate that banks remain well-positioned to support credit expansion, digital innovation, and inclusive growth. At the same time, we must continue addressing asset quality pressures to ensure sustainable financial intermediation,” said Mr. Mutisya.
The report highlights significant progress in digital transformation, with the modernisation of payments systems, including the adoption of the ISO 20022 messaging standard and the development of a nationwide Fast Payment System, positioning Kenya as a leading regional financial hub.
While challenges such as elevated non-performing loans and increased funding costs remain, the sector’s fundamentals point to a system that is stable, well-governed, and capable of sustaining shareholder value while supporting national development priorities.
The State of the Banking Industry Report 2025 provides a comprehensive assessment of the sector’s performance, regulatory developments, and macroeconomic context, serving as a key reference for policymakers, investors, and the wider public.
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