The Central Bank of Kenya (CBK) reported that total net assets of the country's banks grew by 10.3% in 2025, reaching Sh8.35 trillion in December. This marks an increase from Sh7.57 trillion in the previous year, reflecting a steady expansion in the financial sector. The growth is attributed to improved lending activities and increased deposits from customers.
The CBK also noted a shift in dividend policies, indicating that banks may retain more earnings to build reserves against potential future losses. This change could affect shareholders, both direct and indirect, who rely on dividends as a source of income. The move comes as part of broader regulatory efforts to strengthen financial stability.
In addition, the CBK released a report ranking the largest banks in Kenya by market share, with StanChart being reclassified from Tier One. This reclassification highlights evolving trends in the banking landscape and regulatory oversight. The report underscores the dynamic nature of Kenya's financial sector and its response to economic pressures.
