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SME focussed lender Kingdom Bank posted a 59 per cent surge in full-year profit, as its strategic gamble of aggressive branch expansion into underserved rural and small business markets appears to be paying off at a time larger rivals retreat to digital-only models.
Profit after tax climbed to Sh946.2 million for the year ended December 31, 2025, from Sh596.4 million a year earlier, the lender said in a statement. Total assets expanded 24 per cent to Sh51.17 billion, while net loans and advances jumped 58 per cent to Sh22.19 billion, driven by increased lending to micro, small, and medium-sized enterprises (MSMEs).
The bank, a subsidiary of Co-operative Bank since its August 2020 takeover of the distressed Jamii Bora Bank, has opened seven new branches since early 2024, including in Gikomba, Kitale, Meru, Machakos, Bungoma, Kariobangi, and Tom Mboya, bringing its network to 27 outlets.
“We are going where the customers are, delivering value where it matters most,” Managing Director Anthony Mburu said after the Machakos opening in December.
The expansion bucks an industry trend of branch closures as lenders pivot to digital platforms. Kingdom Bank says its physical footprint complements its KB Mobile App, *344# Dial service, and M-Collections platform, offering customers a choice between in-person and remote banking.
Customer deposits rose 39 per cent to Sh29.74 billion, reflecting growing confidence among small-scale traders, farmers, and informal sector players, segments that constitute 98 per cent of Kenya’s businesses and generate 30 per cent of new jobs annually.
Total operating income climbed 35 per cent to Sh3.70 billion, with non-interest income surging 55 per cent to Sh998.6 million, signaling improved revenue diversification beyond traditional lending.
Kingdom Bank said it remains focused on delivering flexible, affordable banking to MSMEs and retail customers, with plans for further branch openings and a core banking system upgrade to enhance efficiency.
“Kingdom Bank continues to explore opportunities to open service outlets in carefully selected locations throughout the country,” the lender said.
