That shift is visible in the half-year numbers of nine lenders used in this analysis.
Nine Kenya banks posted Sh144.9B profit H1 2026 (+16.9%), with lower rates, falling deposit costs and 8.9% NPL decline; Equity surged 31.5%. Credit growth acceleration (+10.6% June) marks shift from defensive mode to restored IT and modernization budgets across the banking sector.
By
Patrick Alushula
Business Reporter
Nation Media Group
A drop in deposit costs and lower loan defaults propelled stronger bank profit growth in the first half of 2026, offering continued boost after a period of expensive funding and elevated credit risk.
A slower pass-through of CBK rate cuts to borrowers helped banks grow first-quarter earnings as deposit costs fell.
The state-owned lender recorded a net profit of Sh174.8 million for the six months compared to Sh12 million posted in a similar…
The bank also paid Sh3.2 billion in interest expenses to depositors during the review period, down from Sh3.5 billion a year…
Customer deposits grew by 11 percent to KSh551 billion, with total assets rising by 11.5 percent to KSh739 billion.
The latest deposits held by the 14 deposit-taking microfinance banks regulated by the CBK mark a reversal of a prolonged decline…
Analysts reckon that banks have been able to attain bigger lending margins or spreads from an easier release of expensive…
