KCB unveils record Sh22 billion dividend payout as profit surges

Business
By Brian Ngugi | Mar 12, 2026
Paul Russo KCB Group CEO speaking during 2024 full year financial results on March 12, 2025. [Wilberforce Okwiri, Standard]

KCB Group, Kenya’s largest bank by assets, has recommended a record dividend payout after full-year net profit rose by 11 percent on the back of an expanded loan book and surging contributions from its regional subsidiaries. The Tier-1 lender posted a net profit of Sh66.8 billion for the year that ended on December 2025, up from Sh60 billion posted in the previous year.

The strong performance prompted the board to propose a final dividend of Sh3 per share, bringing the total payout for the year to a bumper Sh7 per share.

This translates to a total distribution of Sh22 billion, a massive increase from the Sh9.6 billion paid out in 2024, positioning KCB as a rare bright spot in a challenging economic environment marked by corporate losses and a cost-of-living squeeze.

The Sh22 billion windfall will be distributed among more than 193,000 shareholders. The Kenyan government remains the single largest beneficiary.

The National Treasury’s 19.76 per cent stake entitles it to approximately Sh4.35 billion, while the National Social Security Fund (NSSF) is in line for another Sh2.2 billion.

The payout is also a boon for the Mombasa-based Babla family, who collectively command more than 2.6 per cent of the lender, and are set for an estimated Sh580 million windfall.

The family is known on the Nairobi Securities Exchange for its discreet but substantial accumulation of banking stocks.

Foreign institutional investors, who hold 11.1 percent of the group, are also due for a substantial payday. Filings show significant international holdings through nominee accounts, including Standard Chartered Kenya Nominees and other non-resident accounts.

KCB Group’s total revenue climbed to Sh214 billion, reflecting a strategic pivot toward diversified income streams, the lender said.

While net interest income was driven by a 15 percent growth in customer loans to Sh1.59 trillion, non-funded income now delivers 31 percent of total revenue, it added. 

This shift highlights KCB’s move toward payments, commissions, and digital services, reducing its reliance on interest margins in a volatile rate environment.

“Our 2025 performance reflects the strength of the KCB franchise and the continued trust that customers place in us,” KCB Group Chief Executive Officer Paul Russo said in a statement.

The group’s regional diversification strategy proved a key growth engine, with subsidiaries outside Kenya contributing to 30.7 per cent of profit before tax. Additionally, non-banking units such as KCB Bancassurance and KCB Investment Bank delivered strong double-digit profit growth.

KCB further reported an improvement in asset quality, with gross non-performing loans (NPLs) narrowing to Sh211.8 billion from Sh225.7 billion. Provisions against bad debt stood at Sh118.6 billion as the lender intensified its recovery push. Investor focus is now expected to shift to other Tier-1 peers and KCB rivals, including Equity Group and Co-operative Bank, as the market anticipates their respective earnings and shareholder returns.

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