The Central Bank of Kenya (CBK) is the primary regulator of the banking industry. The primary classification of banks in Kenya is by ownership. Some banks belong to local individuals/companies while others belong to foreign individuals or organizations. Another general classification of banks is by nature, that is, microfinance banks and commercial banks. The Central Bank of Kenya which governs banks further classifies commercial banks based on their assets. Tier 1 banks are large banks that have hundreds of billions in assets and are not likely to collapse financially. They are the top banks in Kenya. Tier 2 banks are medium-sized banks while tier 3 consists of small banks. Kenya has many banks. In 2017, this number stood at 42.
Explore the updated list of Tier 1 banks in Kenya, known for their financial stability, asset base, and wide customer reach in 2024. This list details all Tier 1 banks in Kenya. The Central Bank of Kenya classifies commercial banks into three categories: Tier 1, Tier 2, and Tier 3. This classification is determined by a weighted index that considers net assets, capital reserves, customer deposits, and the number of loans and deposit accounts. Tier 1 banks, considered the safest by the CBK, dominate nearly 50% of the Kenyan banking market.
More than 10 Kenyan banks—including Kenya Commercial Bank, Commercial Bank of Africa, Equity Bank and Bank of Africa—have subsidiaries operating in the East Africa Community and South Sudan. Increasing access to finance has been abridged with the use of innovation such as agent banking, which allows commercial banks and Deposit-Taking Microfinance (DTM) institutions to engage the services of third party outlets to deliver specified financial services on their behalf.
According to the Central Bank of Kenya, Tier 1 banks have a weighted index of 5% or higher, Tier 2 banks fall between 1% and 5%, and Tier 3 banks have a weighted index below 1%.
Below is a list of the nine Tier 1 banks in Kenya, ranked by market share. The market share data is based on the Central Bank of Kenya’s 2023 Supervision Annual Report.
Tier 1 Banks in Kenya:
- Kenya Commercial Bank (KCB)
- Total Net Assets: Ksh 1,425,369,827
- Market Size Index: 17.4%
- Equity Bank
- Total Net Assets: Ksh 1,004,243,929
- Market Size Index: 12.2%
- NCBA Bank
- Total Net Assets: Ksh 661,743,852
- Market Size Index: 9.2%
- Cooperative Bank
- Total Net Assets: Ksh 624,254,621
- Market Size Index: 8.8%
- Absa Bank
- Total Net Assets: Ksh 520,301,038
- Market Size Index: 6.6%
- Standard Chartered Bank
- Total Net Assets: Ksh 429,278,578
- Market Size Index: 5.9%
- Stanbic Bank Kenya
- Total Net Assets: Ksh 449,614,899
- Market Size Index: 5.8%
- Diamond Trust Bank Kenya Limited
- Total Net Assets: Ksh 405,613,032
- Market Size Index: 5.4%
- I&M Holdings
- Total Net Assets: Ksh 399,615,631
- Market Size Index: 5.3%