KCB Group CEO Paul Russo, speaking during 2025 H1 FY Results presentation
KCB Group Plc’s regional and non-banking subsidiaries delivered a strong boost to the lender’s half-year results, contributing significantly to the Group’s record performance despite a challenging operating environment across key markets.
For the six months ended June 30, 2025, subsidiaries outside KCB Bank Kenya accounted for 33.4 per cent of the Group’s overall profit before tax (PBT), underscoring the strength of KCB’s diversified regional presence.
These units, which include operations in Uganda, Rwanda, Tanzania, South Sudan, Burundi and the Democratic Republic of Congo, also represented 31.4 per cent of the Group’s balance sheet.
The non-banking arm – comprising KCB Investment Bank, KCB Asset Management, and KCB Bancassurance Intermediary Limited – posted improved returns, with their combined contribution to PBT rising to 2.1 per cent from 1.8 per cent in a similar period last year. The growth was supported by higher transaction volumes, improved client onboarding, and stronger cross-selling of investment and insurance products.
The regional subsidiaries’ performance was particularly impressive given macroeconomic headwinds in markets such as Kenya and Uganda, including inflationary pressures and foreign exchange volatility.
In Uganda, for instance, KCB navigated the government’s shift to its own oil importation programme without significant erosion of its deposit base, reflecting customer confidence in the brand.
KCB’s strategy to deepen regional scale has also been reinforced by targeted branch expansion in high-growth areas. In the first half of 2025, the Group opened six new branches, including locations in Tanzania (Zanzibar) and Rwanda under BPR Bank, alongside four outlets in Kenya. These moves are aimed at capturing untapped retail and SME banking opportunities in fast-developing commercial hubs.
Beyond branch expansion, KCB has invested heavily in digital integration across its subsidiaries. The rollout of its unified mobile app — available in Kenya from August 11 and planned for other markets — is designed to provide instant self-onboarding, AI-powered financial tools, and a suite of mini-apps for payments, savings, investments, and entertainment.
The Group’s environmental and social commitments have also extended to its subsidiaries, with KShs.26.9 billion in green loans issued in Kenya and Tanzania during H1 2025, and loans worth KShs.133.2 billion screened under Environmental and Social Due Diligence across four countries.
KCB Group CEO Paul Russo credited the strong performance to the resilience of the bank’s regional businesses and their ability to adapt to local market conditions. “Our subsidiaries are no longer peripheral contributors — they are central to the Group’s growth story,” Russo said.
With over a third of its earnings now generated outside Kenya, KCB is positioned to leverage its cross-border footprint for sustained growth in the second half of the year.