Over the first half of this year, Kenya Commercial Bank set aside KSh11 billion ($101.5 million) as a provision to meet the risks of loan defaults. The amount is 263.8% higher than that of the same period last year.
According to the new international standards for the accounting presentation of banks' financial results, when banks foresee a high risk that loans granted to their clients will not be repaid, they must set aside financial resources to deal with it.
In some ways, KCB was forced to set aside money for loan defaults due to the covid-19. Also, the banking group has to face the credit risks of the National Bank of Kenya, the acquisition of which was finalized by the end of 2019.
Under these conditions, the group's operating expenses increased by 56.3% compared to the same period in 2019, reducing margins. Net income after tax dropped by 41% compared to the first six months of 2019. Despite this underperformance, the Bank remains on solid fundamentals.
During this pandemic, KCB heavily invested in securities issued by the Kenyan Treasury, which has enabled it to increase its interest income. KCB also benefited from its digitalization strategy. Despite the lockdown, its customer transactions grew, supported by the increase in mobile transactions.
Stanbic Bank and Co-operative Bank also experienced significant increases in credit risk provisions. For the three banks, the total resources allocated for credit risk coverage is KSh14.6 billion shillings.
Idriss Linge
Ethiopia agreed in principle with investors holding over 45% of its $1 billion eurobond due 2...
Africa’s AI adoption is accelerating, but its ability to scale depends primarily on foundational i...
African billionaires increased their combined net worth by $21.9 billion in 2025. Nigerian b...
Flutterwave acquired Nigerian open banking startup Mono in an all-share deal valued between $...
The BCID-AES launches with 500B CFA to fund Sahel infrastructure, asserting sovereignty from the B...
Ethiopia begins construction of Africa’s largest airport near Addis Ababa Bishoftu airport planned to handle 110 million passengers annually Project...
Collaborative programs are emerging across Africa to promote inclusive employment Public, private, and international actors are increasingly...
Cabinet approves bill creating the National Media Regulation Council New body replaces the audiovisual regulator set up in 2006 Reform expands...
This week in Africa, Africa CDC continues its clinical trial on mpox, while a new study highlights limits in malaria control efforts. Surveillance against...
The Sundance Institute selected three African films from more than 16,000 submissions across 164 countries. The 2026 festival will run from January 22...
Organizers opened submissions for the sixth Annaba Mediterranean Film Festival from Jan. 8 to Feb. 28, 2026. The festival accepts feature films, short...