Nairobi 25th August 2025: Kenya’s banking sector remained well-capitalized and strongly positioned to support economic growth in the year 2024. According to the State of the Banking Industry Report 2025, released today by the Kenya Bankers Association (KBA), the sector maintained capital adequacy ratios well above regulatory requirements in 2024, underscoring its resilience and capacity to finance inclusive development.
The report shows that the Total Capital-to-Risk Weighted Assets ratio stood at 19.7% in 2024, against a regulatory minimum of 14.5%, while the Core Capital-to-Risk Weighted Assets ratio stood at 17.4%, comfortably above the 10.5% threshold. This strong capital base, coupled with stable liquidity levels, positions banks to expand lending sustainably in support of households, businesses, and the wider economy.
Speaking during the launch, Kenya Bankers Association Chief Finance Officer Kennedy Mutisya said the year 2024 underscored the resilience of Kenya’s banking sector and its capacity to play a catalytic role in our country’s economic transformation.
‘’Strong capitalization, robust liquidity, and enhanced efficiency demonstrate that banks remain well-positioned to support credit expansion, digital innovation, and inclusive growth. At the same time, we must continue addressing asset quality pressures to ensure sustainable financial intermediation,” said Mr. Mutisya.
The report highlights significant progress in digital transformation, with the modernization of payments systems, including the adoption of the ISO 20022 messaging standard and the development of a nationwide Fast Payment System, positioning Kenya as a leading regional financial hub.
While challenges such as elevated non-performing loans and increased funding costs remain, the sector’s fundamentals point to a system that is stable, well-governed, and capable of sustaining shareholder value while supporting national development priorities.
The State of the Banking Industry Report 2025 provides a comprehensive assessment of the sector’s performance, regulatory developments, and macroeconomic context, serving as a key reference for policymakers, investors, and the wider public.
Access Full Statement Here: KBA Position On The CBK Consultative Paper On Review Of The Risk-based Credit Pricing Model
Media Contacts
Christine Onyango
Director, Communications and Public Affairs
Kenya Bankers Association
Email: conyango@kba.co.ke
About Kenya Bankers Association
The Kenya Bankers Association (KBA) is the umbrella body for all commercial banks in Kenya, regulated by the Central Bank of Kenya (CBK). Established on 16th July 1962, KBA represents 46 member institutions with assets exceeding KES 7.7 trillion. The Association’s core mandate is to champion a stable, competitive, and inclusive banking industry by influencing legislation, regulation, and policy to enhance access to affordable credit for individuals, households, and businesses. KBA also drives financial sector development through strategic initiatives such as the launch of Pesalink, the industry’s first peer-to-peer digital payments platform. In partnership with the CBK and other stakeholders, KBA has also spearheaded key projects including the modernization of the National Payments System, the implementation of the Real Time Gross Settlement System (RTGS), and the Kenya Credit Information Sharing Initiative. Guided by its brand statement, One Industry. Transforming Kenya, KBA continues to promote a strong and professional banking sector that advances innovation, fosters financial inclusion, and supports national economic growth. Learn More: www.kba.co.ke.
