By Benard Sigei
Kingdom Bank closed 2025 with a strong set of results, reflecting a lender in expansion mode and increasingly confident in its growth strategy.
Profit after tax surged 59 per cent to Sh946.2 million, up from Sh596.4 million a year earlier, signalling improved earnings momentum. Profit before tax, however, grew at a slower pace of 5 percent to Sh1.13 billion, pointing to rising cost pressures as the bank scales its operations.
Physical expansion has also been a key pillar of the bank’s strategy. After opening of Kingdom Bank’s branch on Tom Mboya Street, the move signaled where the battle for customers is shifting.
“The Bank continued to expand its physical footprint, opening three new branches in 2025 in Bungoma, Kariobangi and Tom Mboya and an additional branch in Embu in January 2026, bringing the total branch network to 27 branches,” said Kingdom Bank in a statement.
As digital banking continues to grow, lenders are quietly rediscovering that physical presence still matters, especially in fast-moving urban markets where foot traffic, trust and face-to-face service carry weight. This has extended the bank’s reach into both urban and regional markets.
During that period, top-line performance remained robust. Total operating income increased 35 percent to Sh3.70 billion, supported by growth across both interest and non-interest income streams.
Net interest income climbed 28 percent to Sh2.70 billion, driven by an expanding loan book, while non-interest income surged 55 percent to nearly Sh1 billion, highlighting the bank’s push to diversify revenue sources beyond traditional lending.
The growth has however come at a cost after operating expenses jumped 53 percent to Sh2.58 billion, largely reflecting investments in branch expansion and operational capacity.
The widening gap between income growth and costs underscores a familiar trade-off for fast-growing lenders—scale versus efficiency.
Total assets grew 24 percent to Sh51.17 billion, while net loans and advances surged 58 percent to Sh22.19 billion, signalling strong demand for credit. Customer deposits rose 39 percent to Sh29.74 billion, providing the funding base needed to sustain lending growth.
Beyond financial performance, the lender has continued to position itself as a community-focused institution. Its inaugural secondary school scholarship programme supported 40 students, while environmental efforts saw the planting of over 32,000 trees in 2025, bringing the cumulative total to nearly 70,000 trees since 2023.
