Co-operative Bank of Kenya has posted a record financial performance for the year ended December 2025, driven by strong growth in lending, digital banking, and its expanding footprint among micro, small and medium enterprises (MSMEs).
The lender reported a 15.8 per cent rise in profit before tax to KSh 40.3 billion, up from KSh 34.8 billion the previous year, while net profit climbed to KSh 29.75 billion, reflecting a 16.9 per cent increase.
The results mark the bank’s strongest performance to date, underpinned by increased interest income, operational efficiency, and continued expansion across its core business segments.
Dividend payout rises by 67 per cent
In line with the improved earnings, the bank announced a significant increase in shareholder returns, proposing a total dividend of KSh 2.50 per share, up from KSh 1.50 in 2024.
This represents a 67 per cent jump in dividend payout, with total distributions expected to reach KSh 14.67 billion, compared to KSh 8.8 billion in the previous year.
A substantial portion of the payout—about KSh 9.47 billion—will go to members of the co-operative movement, reinforcing the bank’s unique ownership structure and grassroots economic base.
Balance sheet expands as deposits and loans grow
The bank’s balance sheet recorded steady expansion, supported by growing customer confidence and increased lending activity.
Total assets rose by 11.32 per cent to KSh 827.4 billion, while customer deposits grew 13.28 per cent to KSh 576.5 billion. Loans and advances also increased by 12.65 per cent to KSh 421 billion, indicating sustained credit demand across sectors.
Net interest income grew by nearly 22 per cent, helping to lift total operating income to KSh 91.89 billion.
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MSMEs remain central to growth strategy
MSMEs continued to play a central role in the bank’s business model, with increased lending and targeted financial solutions supporting enterprise growth across the country.
During the year, E-Credit disbursements reached KSh 72.96 billion, providing quick and accessible financing to individuals and businesses.
Of this, KSh 10.43 billion was directed to MSMEs, offering working capital and liquidity support in key sectors of the economy.
The bank has also scaled its MSME ecosystem:
- Over 259,000 MSMEs onboarded onto tailored products
- More than 71,000 businesses supported through training and capacity-building initiatives
- MSMEs now account for 16.8 per cent of the loan book and 23.4 per cent of deposits
Cumulatively, the E-Credit platform has disbursed over KSh 500 billion, highlighting its role in expanding access to finance.
Digital channels dominate transactions
Co-op Bank’s continued investment in digital infrastructure is reshaping how customers access financial services.
More than 90 per cent of transactions are now processed through alternative delivery channels, including mobile banking, internet banking, and agency networks.
The bank operates an extensive network of over 16,000 Co-op Kwa Jirani agents, alongside 620 ATMs and cash deposit machines, enhancing accessibility across urban and rural areas.
It has also enhanced its mobile banking platform and introduced new products such as a multi-currency prepaid card, targeting customers engaged in cross-border trade and travel.
Strong co-operative base supports long-term growth
The bank’s growth continues to be anchored in its deep ties to Kenya’s co-operative movement, which has more than 15 million members.
This structure provides a stable customer base and a wide distribution network, complemented by over 222 branches and linkages with 625 SACCO front offices nationwide.
The model has enabled the bank to maintain a strong presence in retail banking while expanding into digital and enterprise financing.
Outlook
Co-operative Bank said it will continue to focus on digital transformation, MSME financing, and sustainable banking as part of its long-term strategy.
The lender is also strengthening its sustainability framework through alignment with global standards and continued investment in social impact initiatives, including education support through the Co-op Bank Foundation.
The FY2025 results position Co-op Bank as one of Kenya’s most consistent performers in the banking sector, combining profitability with broad-based financial inclusion.
