Banks dominate most valuable brands list in Kenya

The banking sector has once again dominated the list of most valuable brands in Kenya,  accounting for 49 per cent of the total value in the latest ranking.

The sector produced seven out of 25 brands on the list, with Co-Cooperative Bank rising 67 per cent to hit a brand value of Sh35 billion.

The lender emerged fifth overall after Safaricom, Equity Bank, KCB and M-Pesa. 

The banking sector recorded a combined brand value of Sh161.6 billion in the annual report by the global brand valuation consultancy, Brand Finance.

Equity Bank has had a successful year in which it saw 51 per cent brand value growth to Sh65.2 billion. This helped it maintain its position as Kenya’s second most valuable brand, closing the gap with Safaricom at the top of the ranking.

The lender with the highest asset value in the country was also listed as the strongest with a Brand Strength Index score of 92 out of 100, earning it an elite AAA+ brand rating for the second consecutive year.

Kenya Commercial Bank (KCB) (brand value up 24 per cent to Sh46.6 billion) was the only other brand in the ranking to achieve AAA+ status, with a Brand Strength Index score of 90 out of 100.

This was a three-point year-on-year increase to solidify its position as the country's third most valuable brand in 2023. Other lenders in the top 25 list include NCBA, Standard Chartered, Stanbic and DTB. 

Even so, Safaricom retained its position as the most dominant brand in the country, with its value up 14 per cent to Sh87 billion.

"Safaricom has shown considerable resilience during difficult operating conditions over the past year. The brand has been able to achieve revenue growth, while successfully completing the first two years of its five-year strategy,'' the report reads in part.

In its latest report, a total of 25 brands across different sectors were surveyed in a bid to aid companies understand the financial value of their brands, hence using the information to drive strategic decision-making.

However, the value of M-Pesa is down to Sh31 billion from Sh33 billion recorded last year.

According to Walter Serem, the consultancy's regional director in East Africa,  the country's top brands have demonstrated some considerable resilience over the past year.

"Clearly shown by the brand value growth achieved by four of the top-five most valuable brands in the ranking, it is all the more impressive, considering the difficult operating conditions that Kenyan brands have faced over the past few years,” Serem said.

The assessment based on sector performance saw the banking sector ranked as the most valuable with a 49.2 per cent score.

Telecoms and utilities sectors take up the second and third position with 35 per cent and six per cent.

The banking sector has been ranked the most valuable since 2011 growing by about Sh215 billion to date.

In terms of growth, Crown Paints Kenya was ranked the fastest-growing brand in the country, growing by about 70 per cent to Sh2.1 billion in one year.

The growth is attributed to the firm's additional operations in Uganda, Tanzania and Rwanda.

"The growth is also attributed to the benefits the firm has enjoyed from the phase-out of pandemic-induced restrictions in East Africa over the past year," the report reads in part.

"This, as the construction industry in the region begins to pick up, with an increase in demand for its products, contributing to a jump in revenues."

Nevertheless, as part of its analysis, Brand Finance also assesses the role that specific brand attributes play in driving overall brand value.

It assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’.

In this regard, Safaricom was ranked with the most sustainability perceptions value at Sh12.5 billion with a score of 6.46 out of 10.

The report, however, notes that it's not on the assessment of its overall sustainability performance. Instead, it highlights the value that the telco has tied up in the sustainability perception of stakeholders.