Family Bank, one of Kenya’s largest mid-tier lenders, posted a 39% jump in profit after tax to KES 2.2 billion ($17 million) in the first half of 2025, thanks to growth in deposits and lending.
The results, announced Tuesday in Nairobi, highlight how Kenya’s mid-tier lenders are fighting for space in a market long dominated by the country’s banking heavyweights: Equity, KCB, and Co-operative Bank.
Family Bank’s balance sheet grew by 21.8% to KES 192.7 billion ($1.5 billion), with loans to customers at KES 100.9 billion ($782 million).
Deposits rose by 26% to KES 150.4 billion ($1.17 billion), signaling stronger customer confidence even as households grapple with inflation and high borrowing costs. By comparison, Equity’s deposits stood at more than KES 1.3 trillion ($10.1 billion), and KCB’s at KES 1.5 trillion ($11.6 billion).
“Our strong half-year results reflect strategic clarity, operational excellence, and the trust our customers place in us,” said Family Bank CEO Nancy Njau.
Net interest income grew to KES 6.9 billion ($53.5 million) due to higher returns from government securities and lending, though costs also climbed. Operating expenses rose 36% to KES 6.7 billion ($52 million) as the bank opened more branches and upgraded digital platforms—a bet that could weigh on margins if revenue momentum eases later this year.
Provisions for loan losses nearly doubled to KES 664 million ($5.1 million), reflecting caution as non-performing loans remain elevated across the industry. Even so, Family Bank said it cut its net exposure to these bad loans by 15%.
The bank, which has 96 branches in 32 counties, is betting heavily on small and medium-sized businesses, supported by credit lines from British International Investment and the European Investment Bank. The strategy could cement its niche in Kenya’s crowded market if SME borrowers can withstand the pressure of higher interest rates.
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