A Consolidated Bank branch in Nairobi.
State-owned Consolidated Bank of Kenya has posted its first profit in 11 years, buoyed by increased income and muted growth in operating expenses.
Disclosures by the lender, which is 93.5 percent owned by Treasury, showed it posted a net profit of Sh198.18 million in the financial year ended December 2025, marking an improvement from the previous year when it posted a Sh155.22 million net loss.
The latest profit is the first one in 11 years, with the previous net profit coming in 2014 at Sh44.42 million. The net profit came in the period where net interest income grew 38.4 percent to Sh1.3 billion, and non-interest income rose 28.1 percent to Sh1.93 billion.
The growth in interest and non-interest income took operating income to Sh1.93 billion in 2025 from Sh1.51 billion in the previous year. The increased income more than covered the 4.3 percent rise in operating expenses to Sh1.74 billion.
Consolidated Bank staff and their customers celebrate the Customer Service Week on October 16, 2016. Go for smiles and warmth in the workplace, by all means. FILE PHOTO
“This performance demonstrates the impact of the strategic efficiency measures we implemented across the business, which have enabled significant cost savings. Maintaining these efficiency levels will remain a priority going forward,” said Dominic Murage, acting CEO at Consolidated Bank.
“Small and medium enterprises remain central to our business model and portfolio, and we intend to deepen our support for them. We aim to strengthen our collaboration with government agencies, parastatals, universities, and ministries to position Consolidated Bank as the preferred banking partner for the public sector.”
The lender closed December 2025 with core capital at negative Sh546.07 million, leaving it requiring at least Sh3.54 billion in order to comply with the updated minimum required core capital of Sh3 billion.
Consolidated was already struggling to comply with the old minimum core capital requirement of Sh1 billion, and the enhancement introduced through the Business Laws (Amendment) Act 2024 piled more pressure on the lender.
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