CBK: Large Banks’ Market Share Falls to 69.7%

The Central Bank of Kenya (CBK) has reported a shift in the distribution of the banking sector’s market share, with medium-sized lenders expanding their combined position while the largest institutions recorded a decline in 2025.

The CBK Bank Supervision Annual Report 2025 shows that eight banks in the large peer group accounted for 69.7 per cent of the regulator’s weighted market-share index in December, compared with 75.6 per cent in 2024.

Medium-sized banks increased their combined share from 16.7 per cent to 23.2 per cent. However, changes in the classification of individual banks contributed to the movement, meaning the figures do not necessarily represent a direct transfer of customers or assets from large lenders.

CBK’s index measures banks using several indicators, including total net assets, deposits, shareholders’ funds, deposit accounts and loan accounts. The approach provides a broader assessment of banking institutions than a ranking based solely on assets.

KCB Bank Kenya retained its leading position, recording 17.3 per cent of the market-size index. Equity Bank Kenya followed with 11.8 per cent, while Co-operative Bank accounted for 9.4 per cent.

NCBA Bank ranked fourth at 7.9 per cent, followed by Absa Bank Kenya at 6.4 per cent. Stanbic Bank Kenya and I&M Bank recorded 5.8 per cent and 5.6 per cent, respectively.

The figures show the continued dominance of the country’s largest lenders, despite the decline in the combined share of their peer group.

Bank classifications change

Standard Chartered Bank Kenya moved from the large peer group to the medium category, while Sidian Bank shifted from the small group to the medium category.

CBK classifies banks with a market share above five per cent as large, those between one and five per cent as medium-sized, and those below one per cent as small.

The changes in classification helped increase the medium group’s combined share, while the small group’s share fell from 7.7 per cent to 7.1 per cent.

Banking industry expands

The changes occurred as commercial banks’ total net assets increased by 10.3 per cent to Ksh8.35 trillion in December 2025, from Ksh 7.57 trillion in 2024.

KCB recorded the highest profit before tax at Ksh 63.7 billion, followed by Equity Bank at Ksh 44 billion and Co-operative Bank at Ksh 36.1 billion.

The report also identifies customer-centricity, risk-based pricing, transparency and ethical culture as key priorities for the banking sector.

The latest figures indicate that medium-sized banks strengthened their position, while large lenders continued to control a substantial share of Kenya’s financial industry.