All the 42 Banks 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 2019
Tier 1 Banks
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
Kenya Commercial Bank
2.Alternative channels including mobile banking and agency banking
Cheaper funding from its parent company and has not had borrowings historically
It has a large Sacco banking base, and the opportunity to grow upon the model
Standard Chartered Bank
Strong in the corporate banking business
Commercial Bank Of Africa
The rapid growth of its retail customer base helped by the M-Shwari platform
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%