Kingdom Bank deepens MSME push with Industrial Area branch

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Kingdom Bank has opened a new branch in Nairobi’s Industrial Area, expanding its physical footprint into one of the country’s most concentrated hubs of micro, small and medium-sized enterprises (MSMEs), as the lender reaps rewards from a strategy of aggressive expansion into underserved markets.

The branch, located at Lunga Lunga Square, is the bank’s 28th nationwide and its second this year. The expansion bucks a trend that has seen most lenders shun new branches, pivoting instead to digital-only models as they cut costs. Kingdom Bank, however, says it is doubling down on physical presence where it matters most.

The lender said the choice of its latest location is strategic. Industrial Area is a dense cluster of manufacturing, logistics, warehousing and import-export trade sectors that rely on working capital, trade finance and cross-border payment solutions.

“Our ambition is to build banking relationships that understand the rhythm of business, particularly for MSMEs that require responsiveness, flexibility and solutions tailored to how they operate,” Managing Director Anthony Mburu said in a statement following the opening. “Kingdom Bank Industrial Area Branch offers exactly this, and we are here to serve our customers in a way that is both practical and personal.”

The expansion comes as the bank, a subsidiary of Co-operative Bank of Kenya, reported a 59 per cent surge in full-year profit to Sh946.2 million for 2025, up from Sh596.4 million a year earlier, driven by increased lending to MSMEs and a push into rural and informal trading centres. Total assets expanded 24 per cent to Sh51.17 billion, while net loans and advances jumped 58 per cent to Sh22.19 billion.

Kingdom 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 before the latest addition. The expansion bucks an industry trend of branch closures as larger rivals pivot to digital platforms.

“We are going where the customers are, delivering value where it matters most,” Mburu said after the Machakos opening in December.

The Industrial Area branch is designed as an integrated financial hub to support working capital flows, cross-border transactions and asset financing, alongside retail banking services for the area’s workforce. The bank says its physical presence complements digital platforms.

Customer deposits rose 39 per cent to Sh29.74 billion in 2025, reflecting growing confidence among small-scale traders, farmers and informal sector players – segments that constitute 98 per cent of local businesses. Total operating income climbed 35 per cent to Sh3.70 billion, with non-interest income surging 55 per cent to Sh998.6 million.

“Kingdom Bank continues to explore opportunities to open service outlets in carefully selected locations throughout the country,” the lender said.