Tier 1 Banks In Kenya
This article is about Tier 1 banks in Kenya. Commercial banks in Kenya are classified into three groups; Tier 1, Tier 2 and Tier 3. This is based on a weighted ratio of all net assets, capital and reserves, customer deposits, number of loans and deposit accounts. CBK considers these banks safe and they control almost 50% of the market share of the Kenyan banking sector.
According to the Central Bank of Kenya, tier one banks have a weighted ratio of five percent or more, tier banks have a ratio of one to five percent, while tier three banks have a weighted ratio less than 0 percent.
Below are the 9 Tier One banks in Kenya ranked according to their market share.
Market share data is from the Central Bank of Kenya’s Annual Supervisory Report 2022.
Tier 1 Banks In Kenya
| Bank | Key Drivers | |
|---|---|---|
| 1 | Kenya Commercial Bank (KCB) | -KCB Mpesa is a key growth driver in terms of deposits and loansAlternative channels; mobile banking and agency banking. Market Share: 14.20% |
| 2 | Equity Bank | -The digitization strategy of the Bank, with the rollout of the Eazzy Banking App and Equitel-the 2nd largest mobile money transfer service. Market Share: 12.67% |
| 3 | NCBA Bank | -The merger between NIC Bank and Commercial Bank Of Africa. Market Share: 10.01 % |
| 4 | Cooperative Bank | -It has a large Sacco banking base, and the opportunity to grow upon the model. Market Share: 9.24% |
| 5. | Absa Bank | -Cheaper funding from its parent company and has not had borrowings historically. Market Share: 6.69% |
| 6 | Standard Chartered Bank | -Strong in the corporate banking business Market Share: 5.81 % |
| 7 | Stanbic Bank Kenya | -Corporate and Investment banking is a key driver for revenue as it contributes to a majority of the bank’s total income.Market Share: 5.74% |
| 8 | Diamond Trust Bank Kenya Limited | -Strong backing from financing partners, i.e. Aga Khan Fund for Economic Development and Habib bank-Best asset quality in the sector, with a gross NPL ratio of 4.6% compared to an industry average of 11.5% Market Share: 5.63% |
| 9 | I&M Holdings | -Geographical diversification Market Share: 5.15% |
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