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KCB retains top position in market share gauge

Zachary Ochuodho @zachuodho

KCB Bank has retained position one with a market share index of 14.4 per cent, followed by Co-op Bank which had 9.93 per cent.

Equity Bank has 9.85 per cent and StanChart 7.11 has per cent, according to Central Bank of Kenya Annual Bank Supervision Report for 2017. The report indicates that Diamond Trust Bank (DTB) had a market share index of 6.72 per cent, Barclays 6.57 per cent, Commercial Bank of Africa (CBA) 6.05 per cent and Stanbic 5.62 per cent in the Tier 1 Group. Barclays dropped from the fourth position in 2016 to sixth last year.

Both StanChart and DTB retained their steady climb to rank fourth and fifth respectively. The rejigging of the pecking order reflects the level of agility and resilience of respective banks in Kenya’s rather turbulent operating environment that banks had to contend with in the last two years.

Of note is the interest rate capping that dramatically cut operating margins especially for lenders previously enjoying big interest spreads. Introduction of more stringent accounting guidelines under the IFRS 9 rules has intensified pressure on bank performance.

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