Kenyan banks have achieved a remarkable feat, posting a record-high net profit of Sh240.1 billion in 2024, despite the country's economic difficulties. This impressive performance is a testament to the banks' resilience and ability to navigate challenging market conditions.

The banks' profit margins were boosted by a decline in lending during the same period, which was attributed to high interest rates. However, the reduction of the benchmark lending rate from 13% to 10.75% by the country's central bank last month is expected to stimulate lending and benefit consumers.

KCB Group emerged as the top earner, reporting a net profit of Sh61.8 billion, a 64.9% increase from the previous year. This prompted the bank to propose a total dividend of Sh3 per share, equivalent to Sh9.6 billion in distributions. KCB Group Chairman Joseph Kinyua attributed the strong profits to the bank's focus on preserving capital and managing expenses to ensure long-term viability.

Equity Bank came in second, generating a revenue of Sh48.8 billion and planning to increase its dividend from Sh15.1 billion to Sh16 billion. The bank will pay the dividend to registered shareholders as of May 23. Co-operative Bank of Kenya maintained its dividend at Sh1.50 per share, translating to a distribution of Sh8.8 billion, and reported a net profit of Sh25.5 billion, a 9.8% rise.

Other notable performers included NCBA Group, which posted a modest rise in earnings to Sh21.86 billion, or 1.9 percent, and increased its payout by 15.8% to Sh5.50 per share. Absa Bank Kenya upped its dividend distribution to Sh1.75 per share, or Sh9.5 billion, while posting a 27.5 percent increase in earnings to Sh20.87 billion. Standard Chartered Bank Kenya issued the most generous dividend concerning share value, at Sh45 per share.

The impressive profits of Kenyan banks are a positive indicator for the country's economy, which has faced challenges in recent years. The banks' ability to adapt to changing market conditions and maintain profitability bodes well for the future of the financial sector in Kenya.

As the Kenyan economy continues to evolve, the performance of its banks will be closely watched. With the central bank's recent reduction of the benchmark lending rate, it remains to be seen how this will impact lending and economic activity in the coming year.