The Co-operative Bank of Kenya and KCB Group have become Kenya’s first commercial banks to debut on the Financial Times ranking of Africa’s fastest growing companies.
The two lenders ranked 127th and 112th respectively out of 130 businesses operating on the continent in this year’s list, which was published last week.
The presence of Kenyan banks on a list dominated by technology firms and start-ups reveals their ability to continue growing rapidly years after their foundation, as well as their agility in adapting to disruption, particularly from fintech companies.
The banks joined other fast-growing local firms, including Roam Electric AB, TPS Eastern Africa (which runs the Serena Hotels), fintech M-Kopa, retailer Quickmart and software company Impax Business Solutions.
Others are aquaculture firm Victory Farms, agribusiness the East African Business Company, IT-focused Pan African IX Data Centres and the Kofisi Hospitality Group.
The ranking is ordered by the highest compound annual growth in revenues (CAGR) between 2020 and 2023.
Co-op Bank is assessed to have had a CAGR of 13.6 percent, while KCB’s was higher at 18.8 percent over the same period.
The two lenders have a regional presence in addition to Kenya. KCB operates in Uganda, Tanzania, Rwanda, Burundi, South Sudan and the DRC, while Co-op Bank has a subsidiary in South Sudan.
KCB closed 2024 with a total operating income of Sh204.8 billion from Sh165.2 billion the year prior, while its net profit rose 66.1 percent to Sh60 billion helping it to reinstate dividends at Sh3 per share.
Co-op Bank, meanwhile, maintained its dividend payout at Sh1.50 per share after posting a Sh25.4 billion net profit with a total operating income of Sh80.6 billion.
The two local lenders were the only commercial banks to make the Financial Times ranking.
Kenyan banks have expanded aggressively in the region through a mix of buyouts and greenfield investments.
In contrast, Co-op Bank has taken a more modest approach, with only one subsidiary in South Sudan, unlike its peers, including KCB, Equity Group, NCBA Group and I&M Group.
The top-tier lenders have set their sights on becoming Pan-African banks, raising the competition with continental behemoths such as South Africa’s Standard Bank and Nigeria’s Access Group.
