Co-operative Bank has entered Africa's top 25 strongest banks by capital for the first time, reinforcing Kenya's position as East Africa's leading financial hub.
Three local lenders secured places among the continent's best-capitalised institutions in the latest The Banker Top 1,000 World Banks survey.
The lender debuted at position 842 globally and ranked 24th in Africa after posting Tier 1 capital of $1.1 billion (about Sh137.5 billion).
The milestone boosted investor confidence, with Co-op Bank's share price rising 1.5 per cent to close the week at Sh35.25, making it one of the top five gainers at the Nairobi Securities Exchange (NSE).
The latest recognition caps two years of strong financial performance by the bank. For the year ended December 31, 2025, Co-operative Bank reported a net profit of Sh34.8 billion, up 10.7 per cent from Sh31.4 billion recorded a year earlier.
The lender also rewarded shareholders with a record dividend of Sh1.80 per share, translating to a total payout of about Sh10.6 billion.
The survey, compiled annually by UK-based financial publication The Banker, ranks banks according to Tier 1 capital, the internationally recognised measure of a bank's financial strength and ability to absorb losses.
Unlike rankings based on profits or total assets, Tier 1 capital reflects a bank's resilience and its capacity to support lending, finance large projects, and withstand economic shocks.
KCB Group retained its position as East Africa's best-capitalised bank after climbing 23 places in the global rankings to position 549.
The lender reported Tier 1 capital of $2.5 billion, equivalent to about Sh316.7 billion.
Equity Bank followed closely at position 573 globally with Tier 1 capital of $2.312 billion (about Sh298.2 billion), leaving a narrow gap of $143 million (about Sh18.4 billion) between the two long-time rivals.
The close contest underscores the fierce competition between Kenya's two largest lenders.
While KCB maintained its lead, Equity recorded faster profit growth during 2025, suggesting future rankings could shift depending on retained earnings, capital accumulation, dividend policies and regional expansion.
KCB's improved standing follows another year of robust growth driven by increased lending, higher customer deposits and stronger contributions from its regional subsidiaries.
The group's ability to retain a significant share of earnings has strengthened its capital base, allowing it to meet tighter regulatory requirements while supporting expansion across East Africa.
Kenya dominated the regional rankings, with three of East Africa's four banks in Africa's top 25 coming from the country.
Tanzania's CRDB was the only other regional lender on the list, ranking with Tier 1 capital of $938 million (about Sh121 billion).
Across the continent, South Africa maintained its dominance, occupying five of Africa's top ten positions.
Standard Bank remained Africa's strongest bank by Tier 1 capital, with $16.1 billion (about Sh2.08 trillion).
Morocco recorded the highest representation in Africa's top 25 with six banks, while Nigeria followed with five, highlighting the depth and resilience of their banking sectors.
China’s ‘big four’ banks took the top spots in The Banker’s latest global ranking, with JPMorgan Chase following in fifth place.
According to the report released on Wednesday, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China and Bank of China commanded the top four positions, with JPMorgan Chase following in fifth place.
In total, Chinese banks made up seven of the top 10 in the ranking, which lists global banks in terms of tier-one capital size.
All seven of them are controlled
by the Chinese government.
