Sidian Group, a recently upgraded Mid-Tier Lender which has been riding on its rapidly expanding deposits, has seen its Net Earnings for Q1 2026 rise 9.0% to KSh 607.03 Million from KSh 556.94 Million over a similar period a year earlier.
The lender, which has over the past two years snatched big deposits from state-owned public bodies such as Social Health Authority(SHA), Housing Levy, Kenya Railways, Kenya Medical Supplies Authority(KEMSA), Nairobi County Government and National Social Security Fund(NSSF), saw its Net interest income more jump to KSh 1.61 Bn in Q1 2026 from KSh 736.58 Mn in Q1 2025, driven by a 61.9% surge in total interest income to KSh 2.88. This is as Sidian packed its cash in Government Securities and not its loan book.
Interest expense was up at a slower pace, 21.8% to KSh 1.27 Bn, despite its expanded deposit base.
Sidian has also boosted its capital strength with core capital jumping to KSh 11.77 Bn, lifting the core capital adequacy ratio to 19.6% from 12.2% a year earlier. Sidian undertook a KSh 3Bn rights issue completed in two tranches in January and February 2026, pushing up its liquidity ratio to 76.9%, above the 20.0% statutory minimum.
Sidian is steaming ahead with its profitability as the lender’s CEO John Okulo, who joined from KCB Bank Kenya on 1 May 2026, takes over from Chege Thumbi who retires on 30 June 2026 after nine years at the helm. Thumbi is credited with pushing Sidian from a Tier 3 to Mid-Tier Lender.
Sidian Group’s Balance Sheet Size grew significantly within the first quarter of 2026, by 38.1%, to KSh 94.08 Bn from KSh 68.12 Bn, boosted by Customer Deposits grew 47.6% to KSh 74.16 Bn from KSh 50.25 Bn.
Deposits from customer has grown from KSh 16.52 Bn in March 2019 to KSh 74.16 Bn today, the pace of this growth rising sharply over the past two years to March 2026.
The biggest client has been Nairobi County Government, which picked Sidian as its principal banker in October 2025, shifting health facility revenues, donor fund management, and the Facility Improvement Fund away from Co-operative Bank and Equity Bank.
Nairobi County also runs a KSh 1.7 Bn monthly payroll overdraft facility with Sidian, deepening City Hall’s relationship with the lender.
Net loans and advances was up 11.9% to KSh 29.38 Bn, a slower pace relative to the balance sheet growth.
With less activity on its loan book, Sidian Gross NPLs declined slightly to KSh 8.25 Bn from KSh 8.65 Bn in March 2025, and net NPL exposure fell sharply to KSh 77.75 Mn from KSh 137.57 Mn.
ALSO READ: Sidian Bank Picks on John Okulo from KCB Group as its New CEO
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