BY MAINA WARURU

Kenyan banks have defied harsh economic times and continue to post even as the rest of the Kenyan economy continues to register sluggish growth.

All top Kenyan banks have been publishing their results for past nine months and the outlook is similar, profitability and growth have been sustained even despite worldwide economic recession.

Leading the pack is the country’s most profitable bank for years now the Barclays Bank of Kenya (BBK). The bank registered a profit of Ksh 6.9 billion up to September this year up from Ksh 6.6 billion realized over the same period last year.

The bank mostly preferred by the upper income class and corporates saw its earnings grow a modest 4.2% but no doubt a huge growth considering results being posted by other sectors of the economy.

Closely following in terms of a healthy balance sheet is the country’s largest bank Kenya Commercial Bank (KCB) which saw its profits grow to Ksh 5.3 billion up from Ksh 5.2, it earned in the nine months of 2008.

The wholly Kenyan owned bank with subsidiaries in Uganda, Tanzania and South Sudan reclaimed its place as the country’s second most profitable financial institution, after years of loss making attributed to non-performing loans.

Kenya’s most elitist bank Standard Chartered Bank however returned the biggest growth in earnings, registering a 42% increase in profits for the nine months of 2009. The bank earned Ksh5.2 billion compared to 3.9 billion it managed over same period last year.

Cooperative bank another Kenyan wholly owned enterprise saw its profits for the period grow 10% to earn Ksh 2.85 billion compared to Ksh 2.59 billion it earned in first nine months of 2008.


The impressive figures are proving critics wrong many of whom had averred that it was a matter of time before the bubble that was profits made by local banks, banks.

But the financial institutions are proving everyone wrong by recording good results even as most companies and even banks in the developed world effect cost-cutting measure to remain afloat.

“Many had expected banks to register losses in the background of economic recession and millions given out as unsecured loans to salaried workers , but it would seem they passed a major test’ said John Wachira a senior manager with Cooperative bank of Kenya.

While the bankers smile all the way to the bank a similar picture is not obtaining in the rest of the economy with activity being at an all time low at the Nairobi Stock Exchange (NSE).

The country’s economy is projected to grow at a mere 2.5 in 2009 an indication that banks were in a class of their.

Outside the banking industry and not surprisingly only the Eastafrican Breweries Limited (EABL) has returned such enormous profits, with the leading beer maker in the region earning over Ksh 4 billion the past nine months, indicating that Kenyans continued to imbibe even as life got harder.

Ends