Kenya’s banking sector expanded its asset base by 10.3% in 2025, reaching Sh8.35 trillion in December, up from Sh7.57 trillion a year earlier.

The Central Bank of Kenya attributes the rise to a surge in government securities holdings of Sh384.5 billion (18.2%), loans and advances up by Sh240.5 billion (6.6%), balances at the central bank increasing by Sh188.9 billion (61.0%), and cash growing by Sh3.7 billion (3.8%).

Customer deposits also grew 9.9% to Sh6.3 trillion, providing a larger funding base for banks to expand their balance sheets.

Capital, profitability and branch network

Capital and reserves rose 18.6% to Sh1.4038 trillion, reflecting capital injections and retained earnings, while profit before tax increased by Sh46 billion (17.7%).

The sector added 38 new commercial bank branches, bringing the total to 1,611 locations, with the Central Bank linking the growth to openings in emerging growth areas.

Shift in market share among bank sizes

Large lenders’ share of the market fell to 69.7% from 75.6% in 2024, while medium-sized banks increased their combined share to 23.2% from 16.7%, indicating a modest diversification of the sector.