Business · Companies · 3 hrs ago
Kenyan Banks’ Profits Rise as Lending to Businesses Remains Cautious
Kenya’s largest banks recorded no annual net losses in the five years covered by their audited accounts.
Their combined pre-tax profits rose to KES 305.95 billion in 2025, after growing in 2024.
About three-quarters of small businesses that may need loans never apply, often expecting rejection or finding borrowing too expensive.
More than 90% of small businesses that do apply are approved, but rising bad-loan costs have made banks more cautious.
Banks have also put money into government securities, which accounted for 27.8% of banking-sector assets by late 2024.
Safaricom’s Fuliza overdraft service brought in KES 4.9 billion in revenue in the six months to September 2026, working with bank partners and collecting repayments automatically through M-PESA.
Fuliza’s average advance fell to KES 192, even as its customer base grew to 17.2 million borrowers.
Kenya’s largest commercial banks recorded no annual net losses over the five years reviewed, while combined pre-tax profits rose to KES 305.95 billion in 2025.
Banks remained cautious about lending to businesses facing irregular sales, incomplete accounts and limited collateral.
Government securities made up 27.8% of banking sector assets by late 2024, while the loan-to-deposit ratio fell to 70.1%.
A Kenya Bankers Association paper said roughly three-quarters of small businesses that might need financing never apply for bank loans.
Safaricom said its Fuliza overdraft service generated KES 4.9 billion in revenue in the six months to September 2026.
- Who
- Kenya’s largest commercial banks, businesses seeking credit and Safaricom’s Fuliza lending partners.
- What
- Bank profits rose while lenders remained cautious about business lending. Fuliza revenue and disbursements also increased.
- When
- Banks’ profits rose through 2025. The article was published on November 8, 2026, and Fuliza figures cover the six months to September 2026.
- Where
- Kenya.
- Why
- Banks face challenges assessing business borrowers and recovering bad loans. Government securities offer an alternative to lending to businesses.
This story does not have two clearly opposing sides.
The World Bank Enterprise Survey collected data later used in a Kenya Bankers Association working paper.
Combined pre-tax profits rose 18.6% to KES 260.09 billion.
The industry’s non-performing loan ratio reached 16.4% in December, and government securities accounted for 27.8% of banking sector assets by late 2024.
Combined pre-tax profits grew another 17.6% to KES 305.95 billion.
Fuliza generated KES 4.9 billion in revenue and disbursed KES 1.16 trillion.
- Banks reviewed
- No tier-1 bank recorded an annual net loss over five years
- Combined pre-tax profits
- KES 305.95 billion in 2025
- Small businesses
- Roughly three-quarters that might need financing never apply for bank loans
- Non-performing loan ratio
- 16.4% in December 2024
- Government securities
- 27.8% of banking sector assets by late 2024
- Fuliza revenue
- KES 4.9 billion in the six months to September 2026
What people are saying
I couldn’t find one.
Not a single tier-1 bank recorded an annual net loss over the period.
The problem, then, is that any potential borrowers never make it through the door.