KCB's KSh26.4bn MSME lending push comes as Kenya's biggest banks tighten their grip on business credit
KCB Group extended KSh26.4 billion in new loans to micro, small and medium enterprises (MSMEs) during the first half of 2026, reinforcing the bank’s push into business lending as its gross loan book grew 14.2% to KSh1.3 trillion.
The lending formed part of a broader expansion across KCB’s retail, SME and corporate portfolios, with the group’s half-year results pointing to sustained credit growth across its markets.
Fresh data from the Kenya Bankers Association (KBA) places KCB among the country’s largest MSME lenders, with the bank ranking third after disbursing KSh26.4 billion in new credit to small businesses between January and June.
KCB ranks third as banks disburse KSh245 billion to MSMEs
The KBA says Kenya’s banking industry issued KSh245.06 billion in new MSME loans during the first six months of 2026, highlighting continued demand for business financing despite a cautious lending environment.
KCB’s KSh26.4 billion placed it behind Equity Bank’s KSh82.3 billion and Co-operative Bank’s KSh32.4 billion, while ahead of Family Bank (KSh21.6 billion), NCBA (KSh17.7 billion), I&M (KSh13.9 billion), Absa (KSh12.9 billion), Kingdom Bank (KSh7.8 billion), DTB (KSh7.4 billion) and National Bank (KSh5.1 billion).
The rankings also reveal how concentrated Kenya’s MSME lending market remains. The top three banks accounted for KSh141.1 billion, or about 58% of all new MSME lending, while the top five supplied nearly 74% of the industry’s total.
Working capital drives business borrowing
The KSh245 billion in new MSME lending formed part of roughly KSh1.1 trillion in total credit extended by reporting institutions during the period.
Working capital remained the biggest reason businesses borrowed, taking 47.3% of lending, followed by business expansion at 26.5% and trade finance at 26.2%.
For KCB, the MSME figures fit into a broader lending strategy that extends beyond traditional branch banking. The group also reported KSh314 billion in mobile loan disbursements during the half-year period, reflecting continued growth across digital and conventional credit channels.
What KCB’s lending says about the market
Rather than representing a standalone SME push, KCB’s KSh26.4 billion in MSME lending mirrors the group’s wider credit expansion strategy.
The KBA figures show that Kenya’s largest banks continue to carry most of the responsibility for financing small businesses, with institutions that combine extensive branch networks, digital lending platforms and large balance sheets accounting for the bulk of new MSME credit.
For KCB, its third-place position reinforces its role as one of the country’s largest SME lenders while supporting the broader loan-book growth that defined its H1 2026 performance.
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