Earlier today, KCB Group disclosed its Q3 2024 financial report, which revealed a continued focus on digital infrastructure and cross-border partnerships in the East African banking sector.
The group has implemented an interoperability partnership between KCB Bank Kenya and Airtel Money, allowing Airtel Money customers to make direct payments to KCB merchant tills. This integration is part of an attempt to streamline digital payment systems and potentially reduce transaction complications for users.
Outside our borders, KCB has established a collaboration with Invest International, a Netherlands-based impact investor, to create a hub in Kenya supporting entrepreneurs seeking financing in emerging markets. The hub will provide working capital, export financing, and investment loans, with a focus on connecting African businesses to international financial resources.
KCB Group has also secured a $540,000 Project Preparation Facility from the Green Climate Fund, targeting support for MSMEs (Micro, Small, and Medium-sized Enterprises) developing climate-related technologies. This initiative is linked to an emerging trend where financial institutions are incorporating environmental considerations into their lending strategies.
During the same period, KCB Group received COMESA Competition Commission approval for the potential sale of National Bank of Kenya to Access Bank. It also signed a €230 million partnership with the European Investment Bank to support SMEs.
Currently, KCB Group operates 528 branches, 1,313 ATMs, and supports over 1.3 million merchants and agents. The bank offers mobile and internet banking services alongside a 24-hour contact center.
For the first nine months of 2024, the banking group reported a profit after tax of Ksh. 45.8 billion, representing a 49% increase. The bank’s revenue grew by 22%, with total assets reaching Ksh. 2 trillion and customer deposits standing at Ksh. 1.5 trillion.
The bank maintains a strong capital position, with core capital at 16.5% of total risk-weighted assets (against a statutory minimum of 10.5%) and a total capital to risk-weighted assets ratio of 19.3% (against a regulatory minimum of 14.5%).
Group Chairman Dr. Joseph Kinyua acknowledged this, stating, “The Group business is well positioned to deliver stronger shareholder value, riding on its solid capital and liquidity positions, robust governance, and dedication to sustainable business practices.”
Shareholder equity grew by 14%, expanding to Ksh. 249 billion, while earnings per share saw a substantial increase to 49%, reaching Ksh. 18.99. Perhaps a major contributing factor is the bank’s improved limit management strategies that have enabled it to successfully increase mobile loan disbursements to Ksh. 265 billion.
Subsidiaries outside Kenya contributed 36.6% of profit after tax and 34% of total assets, indicating the bank’s strategy of geographic diversification. The bank has continued to expand its presence across East Africa, with banking subsidiaries in Tanzania, South Sudan, Uganda, Rwanda, Burundi, and the Democratic Republic of Congo.
During the financial report presentation, a major point of discussion emerged around the bank’s liquidity and withdrawal policies. Just this week, customers on X had raised concerns about limited daily counter withdrawals in some areas, with some reports suggesting a maximum withdrawal of Ksh. 60,000.
However, KCB Group CEO Paul Russo was quick to dismiss these accounts, asserting the bank’s strong liquidity position at 47% and categorically denying any implemented withdrawal restrictions.
