26 May, Sunday
Tier 1 Banks In Kenya

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

BankKey Drivers
​​1​​Kenya Commercial Bank (KCB)​-KCB Mpesa is a key growth driver in terms of deposits and loans​​Alternative 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 % 
7Stanbic 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%
8Diamond 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%
9I&M Holdings-Geographical diversification Market Share: 5.15%