Kenya’s major banking groups are relying increasingly on their regional subsidiaries, although the contribution from foreign markets varies across countries. Equity Group, KCB Group and I&M Group all recorded significant business outside Kenya in the first half of 2026.
For Equity Group, regional subsidiaries accounted for 52% of banking assets and 47% of profit before tax in the period. KCB’s operations outside KCB Bank Kenya contributed 31.3% of group assets and 29.6% of profit before tax.
I&M Group also increased its reliance on regional operations. Its subsidiaries contributed 33% of group profit before tax, up from 25% a year earlier, while accounting for 31% of total assets.
However, the returns have not been uniform across the markets. Equity Bank Kenya recorded a return on average assets of 4.8%, while its regional subsidiaries posted 3.3%. Its return on average equity also stood at 34.7% in Kenya, compared with 22.6% across the regional subsidiaries.
Within Equity’s foreign operations, the Democratic Republic of Congo (DRC) remains significant. Equity BCDC recorded a return on average assets of 3.1% and a return on average equity of 22.4%.
The DRC operation also recorded a 4.9% non-performing loan ratio, which was lower than the 15.1% reported in Kenya. Its cost of risk stood at 0.9%, compared with 2.1% in Kenya.
Other markets, however, posted stronger returns on assets.
Rwanda recorded 4.4%, while Tanzania reached 5.0%. Uganda and South Sudan remained below Kenya, showing that performance differs considerably across Equity’s regional portfolio.
I&M Group is also seeing a growing contribution from outside Kenya. Kenya accounted for 67% of its profit before tax in the first half of 2026, down from 75% a year earlier.
Rwanda was a major contributor to that shift, as its profit increased by 53% to KSh2.4 billion. At the same time, its assets grew by 44% to KSh119 billion, while return on equity rose to 29% from 23%.
The figures show that regional expansion is becoming an important part of the growth strategies of Kenyan banking groups. However, the performance also varies by market, as some subsidiaries generate stronger returns while others contribute through expanding assets and earnings.