All the 38 commercial banks in Kenya are categorized into three groups; Tier 1, Tier 2 and Tier 3. This is based on a weighted index of all their net assets, capital, and reserves, customer deposits, number of loans and deposit accounts. These banks are considered to be safe by CBK and control almost 50% of the Kenyan banking sector market share.
According to the Central Bank of Kenya, Tier 1 banks have a weighted index of five percent and above, Tier banks have an index of between one and five percent while Tier three banks have a weighted index of below 0 percent.
List of Tier 1 Banks in Kenya as of 2021.
| Bank | Key Drivers | |
|
1 |
Equity Bank |
The digitization strategy of the Bank, with the rollout of Eazzy Banking App and Equitel, which is currently the 2nd largest mobile money transfer service |
|
2 |
Kenya Commercial Bank |
1.KCB Mpesa is a key growth driver in terms of deposits and loans 2.Alternative channels including mobile banking and agency banking |
|
3 |
Absa Bank |
Cheaper funding from its parent company and has not had borrowings historically |
|
4 |
Cooperative Bank |
It has a large Sacco banking base, and the opportunity to grow upon the model |
|
5. |
Standard Chartered Bank |
Strong in the corporate banking business |
|
6 |
NCBA |
Merger between NIC Bank and Commercial Bank Of Africa |
| 7 | DTB Bank | 1.Strong backing from financing partners, i.e. Aga Khan Fund for Economic Development and Habib bank
2. Best asset quality in the sector, with gross NPL ratio at 4.6% compared to an industry average of 11.5% |
| 8 | Stanbic Bank |
1. Corporate and Investment banking is a key driver for revenue as it contributes to a majority of the bank’s total income |
| 9 | I&M Holdings | Geographical diversification |
