KCB, Equity and Co-operative Bank ranked among Africa’s 25 strongest banks

Kenya has strengthened its position as East Africa’s leading financial hub after three of its banks were ranked among Africa’s 25 strongest lenders by capital in the latest The Banker Top 1,000 World Banks survey.

The latest rankings placed KCB Group as East Africa’s best-capitalised bank after climbing 23 places globally to position 549. Equity Bank followed at position 573, while Co-operative Bank improved its standing to rank 842 globally.

The annual rankings, compiled by the UK-based financial publication The Banker, measure banks based on Tier 1 capital, which is internationally recognised as the key indicator of a bank’s financial strength, resilience and ability to absorb losses.

The report shows that Kenya dominates the East African banking sector, with three of the region’s four banks featured among Africa’s top 25 strongest banks. KCB reported Tier 1 capital of $2.455 billion, narrowly ahead of Equity Bank’s $2.312 billion, leaving a difference of just $143 million between the two lenders. Co-operative Bank ranked 24th on the continent with Tier 1 capital of US$1.066 billion, while Tanzania’s CRDB Bank completed East Africa’s representation in the top 25 with $938 million.

Across the continent, South Africa continued to dominate the rankings, occupying five of the top ten positions. Standard Bank retained its position as Africa’s strongest bank by capital, with Tier 1 capital of US$16.1 billion.

Morocco had the highest number of banks in the continental top 25, with six institutions making the list, followed by Nigeria, which contributed five banks, reflecting the strength and scale of their banking sectors.

KCB’s improved global ranking follows a year of strong financial performance supported by growth in lending, customer deposits and earnings from its regional subsidiaries. The bank has also strengthened its capital position through retained earnings, enabling it to support business expansion while meeting increasingly stringent regulatory capital requirements.

Although KCB remains the region’s largest bank by capital, the relatively small gap separating it from Equity Bank points to growing competition between the two institutions. Equity’s stronger profit growth during 2025 suggests future rankings could change depending on how the banks build capital, manage dividend payouts and pursue regional expansion.

Unlike rankings based on profits or total assets, Tier 1 capital measures a bank’s core financial strength and its ability to withstand economic shocks. Banks with stronger capital buffers are generally better positioned to finance large infrastructure projects, support economic growth and expand into new markets while maintaining financial stability.