StanChart Bank Kenya Limited plans to dispose its Chiromo headquarters in Westlands, Nairobi, as part of a strategic shift toward an “asset-light” model, with the sale expected to be complete by June 2026.
The seven-storey StanChart Bank Kenya Head Office, with a book value of approximately KSh1.41 billion, occupies 1.88 acres along Chiromo Road and is expected to generate up to KSh196 million annually.
StanChart Kenya has also disposed of its Nyeri and Treasury Square properties, reinforcing a broader exit from owned real estate
“Selling the Chiromo HQ is best interpreted as capital optimization and a strategy shift, not financial distress. However, such cases are misinterpreted by majority of retail investors. This might have a negative impact on SCBK short-term share price performance,” said Dedan Maina, a financial analyst at Ketu Capital.
This transaction happens when the lender has made significant changes to its c-suite that has seen the retirement of Kariuki Ngari as CEO. In a notice on January 22nd, 2026, StanChart Board also appointed Birju Sanghrajka as its new Managing Director and CEO.
StanChart Bank Kenya Financial Performance in 2025
After issuing a profit drop alert, the only listed lender to do so, StanChart Bank Kenya reported a net profit of KSh 12.4 billion in 2025 full year financial results, representing a 38% decline from KSh 20.1 billion recorded over a similar period in 2024.
This drop was driven by weaker income, higher operating expenses, and a one-off cost of KSh 2.6 billion related to the staff pension arrears case.
Stan Chart Bank Kenya’s total operating income declined 16.5% year-on-year to KSh 42.3 billion, primarily due to declines in both net interest income and non-interest income.
Net interest income fell 13.2% on account of declining interest rates. During the review period the Central Bank of Kenya (CBK) cut its policy rate by 225 bps to 9.0% in December 2025. The decline in net interest income was partly cushioned by lower funding costs on customer deposits and increased interest income from government securities.
The lender was also hit by Non-interest income decline of 23.0% to KSh 13.4 billion, driven by a decline in volume of transactions and margins in transaction services and markets.
However, growth in the bank’s wealth solutions business helped moderate the decline.
Foreign exchange trading income fell by a huge 141.7% to KSh 3.4 billion, resulting in downward pressure on overall non-interest income in the period under review.
Underlying expenses grew by 4%, while total operating expenses rose 13.3% to KSh 25.5 billion. Standard Chartered Bank incurred a one-off employee past service cost of KSh 2.6 billion, linked to the pension case.
Consequently, the bank’s pre-tax profit plunged by 40.3% to KSh16.8 billion, while net income plunge slid 38% to KSh 12.4 billion.
Standard Chartered Bank’s Balance Sheet size shrank 5.5% to KSh 363.5 billion, whereas shareholders’ equity stood at KSh 66.3 billion, down 7.6% year-on-year.
Customer deposits fell by 4.1% to KSh 283.5 billion, while loans and advances grew marginally by 1.8% to KSh 154.3 billion, signalling sluggish loan uptake.
Loans as a share of the asset base was 42.5%. up from 39.4% in 2024, while the stock of government securities on the balance sheet rose from 25.7% in 2024 to 29.5% in 2025. The deposit base accounted for 76.9% of assets in 2024, and this proportion rose to 77.9% in 2025. The loan-to-deposit ratio rose to 54% from 51% in 2024.
Gross non-performing loans edged lower by 27% to KSh 8.8 billion, reflecting improved asset quality. Non-performing loan ratio improving by 200bps to close at 5.4%. The bank’s liquidity ratio stood at 64.4%, more than three times the CBK’s statutory minimum requirement of 20%.
Despite the net income dip, StanChart Board of Directors recommended a generous final dividend of KSh 23.00 per ordinary share.
Combined with an interim dividend of KSh 8.00 per share paid earlier, the total dividend for the year amounts to KSh 31.00 per share compared to KSh 45.00 per share in 2024, translating to a payout ratio of 95.5%.
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