Credit Bank took decisive actions in the first quarter of 2026 to strengthen its liquidity position and pivot the bank for a return to sustained profitability.
While the Bank recorded a before-tax loss of Sh26.6 million in the quarter from Sh68 million in a similar period last year, the bank has accelerated proactive measures to build capital, enhance resilience, and aggressively address asset quality in a challenging macroeconomic environment to shore up capital amidst slow lending.
Kenya has witnessed a tough macro-economic environment marked by geopolitical tensions and an all-out war in the Middle East, that has impacted on global energy and food prices, and affected shipping. This is expected to slow global growth due to effects of higher inflation and reduced demand arising from the higher energy prices and elevated uncertainties.
Credit Bank’s year-on-year paid up capital stood at Sh1.48 billion with strong capital adequacy ratios and liquidity almost doubling from 15.5 per cent to 22.74 per cent. Kenya’s Parliament adopted the Business Laws (Amendment) Act, in December 2024, which increases the minimum core capital requirement in annual increments, to Sh3 billion at end-2025, and eventually Sh10 billion at the end of 2029, from Sh1 billion.
The bank said it continues to shore up its buffers ahead of compliance even as it leverages shareholder backing in the plan to raise an additional fresh Sh4.5 billion capital from private placements.
“For the three months period, and in line with our purpose of transforming the financial industry landscape through innovative and relevant financial solutions, we have continued to empower customers through a range of innovative products while making a strategic move to balance asset growth with caution in order to retain high asset quality amidst tough macro-economic times,” Credit Bank CEO Betty Korir said.
Loan growth slowed to Sh15.8 billion to guard against mounting loan defaults in a period where industry level ratio of gross non-performing loans (NPLs) to gross loans stood at 15.6 per cent in March 2026, compared to 15.4 per cent in December 2025, according to the Central Bank of Kenya. The slow growth, however, hit the bottom line in the short run even as the bank sought to grow non-interest income through high-interest-earning deposits and buying government securities. The bank has also strengthened loan recovery efforts to restructure struggling facilities while making adequate provisions for the NPLs.
“Credit Bank has continued to be open and strategic on how we see the future evolve to achieve our client goals and create opportunities even as we protect our client wealth and position for market cycles,” the CEO said.
“This was rewarded with the belief in our customers who grew deposits in the bank from Sh19.3 billion last year to Sh22.9 billion in the period ending March this year underwriting the confidence in the lender,” she added.
The bank also continued growing the asset base with total assets standing at Sh28.3 billion as at March 2026 up from Sh26.3 billion in a similar period last year.
“Credit Bank sees a great opportunity in repositioning for growth in the market as business environment learns to adapt to the multiple crises tooted in our belief and desire to transform the socio-economic welfare of our people by offering innovative financial solutions.”
