The banking sector continues to dominate activity on the Nairobi Securities Exchange (NSE), accounting for 42.0% of total market capitalisation as investor flows remain concentrated in large-cap lenders. The rally has been supported by easing inflation, improved liquidity conditions, and sustained domestic institutional demand for equities.
Core inflation eased to 5.59% in April, creating a more stable environment for credit expansion and helping anchor interest rate expectations. Against this backdrop, banking stocks have extended a multi-quarter recovery, with the sector’s performance increasingly driven by earnings strength and balance sheet expansion.
Banking Sector Anchors NSE Liquidity As Valuation Recovery Deepens
The NSE Banking Sector Index has gained 16.81% year-to-date, building on the valuation recovery that began late last year and lifting trading activity across the segment. The NSE banking segment remains the dominant source of liquidity on the exchange, with banks listed on the Nairobi Securities Exchange (NSE) continuing to attract the largest share of trading value and institutional positioning. The rally in banking stocks has been supported by strong corporate earnings, improving asset quality, and sustained growth in non-funded income streams.
Investor appetite has increasingly shifted toward dividend-paying financial stocks, particularly tier-one lenders with diversified regional exposure and digital-first operating models. This has reinforced the role of the banking sector as the central driver of overall market activity on the NSE.
The top revenue-generating banks on the Nairobi Securities Exchange (NSE) are:
1. Equity Group Holdings
Equity Group Holdings remains the most profitable listed financial institution in East and Central Africa, while also recording the highest full-year profit in Kenyan corporate history. The group continues to benefit from a diversified regional footprint and efficiency gains across its operations.
The bank reported total revenue of KSh 264.4 billion, comprising KSh 126.9 billion in net interest income and KSh 90.8 billion in non-funded income. Profit after tax rose 55% year-on-year to KSh 75.5 billion, supported by strong performance across subsidiaries. Total assets expanded to KSh 1.97 trillion, with customer deposits reaching KSh 1.46 trillion.
A key driver of performance has been its regional subsidiaries, which now contribute close to half of total profitability. Operations in the Democratic Republic of Congo, Uganda, and Tanzania recorded sharp growth, while efficiency improvements from digital migration helped reduce the cost-to-income ratio from 58.2% to 51.0%. The insurance arm also added momentum, with gross written premiums rising 75% and profit before tax reaching KSh 2.0 billion.
2. KCB Group PLC
KCB Group PLC holds the largest overall balance sheet and asset base in East Africa, supported by broad lending operations and active capital redeployment across its markets. The group posted total revenue of KSh 275.5 billion, with operational revenue standing at KSh 211.8 billion. Profit after tax increased 11% to KSh 68.4 billion, while total assets rose to KSh 2.15 trillion. Customer deposits grew 15% to KSh 1.6 trillion, reflecting continued balance sheet expansion.
Performance has been shaped by strategic restructuring, including the divestment of National Bank of Kenya to Access Bank Plc, freeing up capital for core lending activities. Investments in Riverbank Solutions and Pesapal Limited have strengthened its digital and fintech capabilities, with mobile transactions now accounting for 99% of total traffic. Mobile lending also expanded significantly, rising 30% to KSh 544 billion in disbursements.
3. Co-operative Bank of Kenya
Co-operative Bank of Kenya continues to anchor its business model on SACCOs, agricultural value chains, and retail banking networks, giving it a stable and defensive revenue structure within the sector. The bank reported total revenue of KSh 122.2 billion and maintained an 11.5% market share in Kenya, positioning it as the second-largest domestic lender after KCB. Its earnings base is strongly supported by institutional relationships, particularly within the cooperative movement and agriculture-linked financial ecosystems.
Growth has been driven by transaction-based income from its retail footprint, alongside customised payment infrastructure for institutional clients. This has enabled Co-op Bank to sustain steady revenue generation even in shifting interest rate environments.
4. NCBA Group PLC
NCBA Group PLC has continued to build momentum through its corporate banking franchise and integration of digital micro-lending platforms. The group recorded total revenue of KSh 97.4 billion and profit after tax of KSh 23.4 billion, marking a 7% increase. Total assets rose to KSh 716 billion, reflecting steady expansion across its core business lines.
Performance was supported by net interest income of KSh 57.7 billion, aided by a KSh 17.1 billion reduction in interest expenses following disciplined deposit repricing during a period of easing market rates. Digital partnerships, including M-Shwari, continue to provide a stable stream of low-cost lending income driven by high transaction volumes.
5. I&M Group PLC
I&M Group PLC has gained traction among investors due to its accelerating revenue growth and expanding regional corporate lending portfolio. The group posted total revenue of KSh 83.6 billion, supported by strong income growth across corporate banking operations in its regional markets. Its revenue trajectory has positioned it among the fastest-expanding tier-one banks on the NSE in terms of top-line momentum.
A notable contributor to performance has been its wealth management arm, I&M Capital, which recorded rapid profit expansion exceeding 900%. This diversification into fee-based income streams has added to overall earnings stability.
6. Absa Bank Kenya PLC
Absa Bank Kenya PLC has continued shifting its earnings structure toward non-funded income in an effort to reduce reliance on traditional lending and treasury income. The bank recorded total revenue of KSh 75.7 billion and profit after tax of KSh 22.9 billion, representing a 10% increase. Its earnings mix has increasingly tilted toward transactional and fee-based income sources.
Non-funded income rose 12% to KSh 18.1 billion, contributing 29% of total income through forex trading, transaction fees, and brokerage services. The bancassurance unit also remained a strong contributor to earnings. At the same time, improved credit quality helped reduce the gross non-performing loan ratio to 11.4%, down from the industry average of 15.5%, while lowering impairment costs by 32%.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.