Kenya Commercial Bank
Kenya has maintained its slow economic recovery, with estimated GDP growth of 2.4% in 2004, compared with 1.8% in 2003. It has also mended some of its fences with the IMF, which recently endorsed the progress made by the government under the poverty reduction and growth facility.
Barclays Bank Kenya has had a strong year, but Kenya Commercial Bank, in which the government's stake has been reduced to 26.2%, has caught the eye in 2004/05. KCB has 130 branches nationwide and operates 73 ATMs, with a further 45 due to be installed in 2005, and has enjoyed an impressive turnaround in its performance in the past 12 to 18 months. Pre-tax profits rose to just over KSh1 billion in 2004, up 22% on 2003, while its net non-performing loans were reduced from KSh7.9 billion at the end of 2003 to KSh7.5 billion in 2004. Customer deposits expanded from KSh50.6 billion to KSh55.9 billion as KCB pushed ahead with its Mteja project, aimed at refurbishing its branches and upgrading its information technology systems.
Another positive development for KCB in 2004 was its successful KSh2.35 billlion rights issue, which has helped bolster shareholder funds.