Key takeaway: CBK sorts commercial banks by a weighted market-size index. As at December 2025, eight banks sit in the large peer group (5%+). Standard Chartered Kenya fell to 4.5% and is now a medium (Tier 2) bank. Large banks hold about 69.7% of the composite market; medium about 23.2%; small about 7.1%.
- How the Classification Works
- Major 2025 Shift: StanChart Leaves Tier 1
- Sector Snapshot (Year-End 2025)
- Top 10 by Market-Size Index (December 2025)
- Tier 1 Lenders: Large Peer Group (8 Banks)
- Tier 2 Lenders: Medium Peer Group
- Tier 3 Lenders: Small Peer Group
- Core Capital Rules (Context for Smaller Banks)
- What This Means for You
- Risks and Considerations
- How to Choose
- Frequently Asked Questions
- Bottom Line
- Sources
Not every bank in Kenya carries the same weight. The Central Bank of Kenya makes that distinction official through peer groups often called Tier 1, Tier 2 and Tier 3.
This guide uses the CBK Bank Supervision Annual Report 2025 (December 2025 market-share appendix) as the primary ranking source, with notes where later quarterly bank results differ. Treat the list as a snapshot. Mergers, capital raises and deposit shifts move banks between groups.
How the Classification Works
CBK builds a weighted composite market-size index from:
- net assets;
- total deposits;
- capital and reserves (shareholders’ funds);
- number of deposit accounts;
- number of loan accounts.
Cut-offs used in the 2025 report:
- Large peer group (Tier 1): index of 5% and above
- Medium peer group (Tier 2): 1% to under 5%
- Small peer group (Tier 3): under 1%
This is not a pure “biggest assets” list and not a profitability ranking. Microfinance banks sit under separate rules.
As at 31 December 2025, CBK reported 8 large banks, 11 medium banks and 20 small banks (39 commercial banks in the peer-group tables). Large banks’ combined share was 69.7%, medium 23.2%, small 7.1%.
Major 2025 Shift: StanChart Leaves Tier 1
Read also: StanChart Drops to Tier II as KCB Widens Lead in CBK 2025 Rankings
Standard Chartered Bank Kenya dropped out of the large peer group after its market-size index fell to 4.5% from 5.4% in 2024. That is below the 5% line, so CBK places it in the medium peer group (Tier 2).
On the December 2025 appendix, StanChart ranks ninth overall, with net assets of about KSh 364.5 billion and deposits of about KSh 284.7 billion.
CBK says the large group’s combined share fell from 75.6% to 69.7% mainly because StanChart exited large into medium. The medium group grew from nine to 11 banks after StanChart entered and Sidian Bank moved up from the small group.
This is a relative market-weight change, not a finding that StanChart failed capital adequacy. The bank remains a major international franchise in Kenya.
Sector Snapshot (Year-End 2025)
From the same supervision report:
- Total net assets: about KSh 8.35 trillion
- Capital and reserves: about KSh 1.40 trillion
- Sector total capital adequacy: about 20.7% (above the 14.5% minimum)
- Profit before tax: about KSh 306.3 billion for 2025
Later 2026 quarterly bank results can show higher running balances. For tier placement, use the official December 2025 index until CBK publishes the next full peer-group appendix.
Mobile: Swipe left / right → ←
| Peer group | Banks (Dec 2025) | Combined market share | Index band |
|---|---|---|---|
| Large (Tier 1) | 8 | 69.7% | 5% and above |
| Medium (Tier 2) | 11 | 23.2% | 1% to under 5% |
| Small (Tier 3) | 20 | 7.1% | Under 1% |
← Swipe on mobile → Source: CBK Bank Supervision Annual Report 2025
Top 10 by Market-Size Index (December 2025)
| Rank | Bank | Index | Tier |
|---|---|---|---|
| 1 | KCB Bank Kenya | 17.3% | 1 |
| 2 | Equity Bank Kenya | 11.8% | 1 |
| 3 | Co-operative Bank | 9.4% | 1 |
| 4 | NCBA Bank Kenya | 7.9% | 1 |
| 5 | Absa Bank Kenya | 6.4% | 1 |
| 6 | Stanbic Bank Kenya | 5.8% | 1 |
| 7 | I&M Bank | 5.6% | 1 |
| 8 | Diamond Trust Bank (DTB) | 5.6% | 1 |
| 9 | Standard Chartered Kenya | 4.5% | 2 |
| 10 | Prime Bank | 4.3% | 2 |
← Swipe on mobile →
KCB’s lead over Equity is about 5.5 percentage points on the 2025 index (17.3% vs 11.8%), much wider than the near-tie of the early 2020s.
Tier 1 Lenders: Large Peer Group (8 Banks)
These banks hold a market-size index of 5% or more. Together they account for about 69.7% of the composite market as at December 2025. Scale, branch reach and capital depth are their usual strengths.
- KCB Bank Kenya — Index 17.3%. Net assets about KSh 1.50 trillion; deposits about KSh 1.15 trillion. Clear number one on the CBK composite.
- Equity Bank Kenya — Index 11.8%. Net assets about KSh 1.04 trillion; deposits about KSh 849 billion. Second on the index; strong deposit-account footprint.
- Co-operative Bank of Kenya — Index 9.4%. Deep SACCO and cooperative linkages; third overall.
- NCBA Bank Kenya — Index 7.9%. Strong digital and transactional presence; very large share of deposit and loan accounts in the CBK table.
- Absa Bank Kenya — Index 6.4%.
- Stanbic Bank Kenya — Index 5.8%. Corporate, forex and investment banking strengths.
- I&M Bank — Index 5.6%.
- Diamond Trust Bank (DTB) — Index 5.6%, eighth in the large group.
StanChart is no longer on this list. Older guides that still list it as Tier 1 are out of date for December 2025 CBK data.
Tier 2 Lenders: Medium Peer Group
Medium banks sit between 1% and under 5% on the index. As a group they held about 23.2% of the market in December 2025 after StanChart and Sidian moved in.
- Standard Chartered Bank Kenya — Index 4.5%, rank 9. International franchise; now the largest name in the medium group on this index.
- Prime Bank — Index 4.3%, rank 10. Closest challenger to the 5% large-bank line after StanChart.
- Bank of Baroda (Kenya) — About 2.6% on recent composite rankings.
- Family Bank — Mid-market and retail relationship focus.
- Citibank N.A. Kenya — Institutional and corporate banking.
- Bank of India, National Bank of Kenya, SBM Bank Kenya, Sidian Bank, Ecobank Kenya, HF Group / HFC — among other medium names on the 2025 peer list (exact order can shift with each appendix).
Many Tier 2 banks lean into SMEs, diaspora corridors, mortgages or niche corporate books rather than mass retail scale.
Tier 3 Lenders: Small Peer Group
Small banks each sit under 1% on the index and together held about 7.1% in December 2025. Several face the tightest pressure from the higher core-capital rules.
- Examples often cited in this band include Victoria Commercial Bank, Gulf African Bank, Bank of Africa Kenya, Guaranty Trust Bank, ABC Bank, Kingdom Bank, Habib Bank AG Zurich, DIB Bank Kenya, Premier Bank, Credit Bank, Development Bank of Kenya, Consolidated Bank and others under 1%.
- Development Bank of Kenya, Credit Bank and Consolidated Bank have featured in capital-gap reporting and remain closely watched under the KSh 3 billion core capital floor.
Always confirm a bank’s current licence and capital status on the CBK directory before treating any small bank as “safe by default.”
Core Capital Rules (Context for Smaller Banks)
Kenya raised the minimum commercial-bank core capital from the old KSh 1 billion floor. The first hard step was KSh 3 billion by end-December 2025, as part of a longer path toward a much higher eventual minimum (commonly discussed toward KSh 10 billion over multi-year stages).
CBK’s Bank Supervision Annual Report 2025 states that seven commercial banks failed to maintain the KSh 3 billion core capital minimum as at 31 December 2025. The same report does not name those seven in the capital-breach summary. CBK also recorded other ratio breaches (total capital / risk-weighted assets, core capital ratios and related tests) at a smaller number of banks.
Treasury has separately discussed a more flexible timetable toward the ultimate higher ceiling. Near-term, depositors and shareholders in small banks should still track CBK enforcement and each bank’s capital-raising plans.
What This Means for You
- Large savings or business float: Tier 1 banks usually offer the deepest capital, product range and infrastructure.
- SME relationship lending: Some Tier 2 banks can be more flexible than process-heavy giants.
- International or multi-country banking: StanChart (now Tier 2 on the index), Citi, Ecobank and pan-African groups remain relevant for corridors even when the composite index is lower.
- Digital-first retail: Equity, NCBA and KCB still dominate scale on apps and accounts; check current product pricing separately.
KDIC deposit insurance covers eligible deposits up to the statutory limit (commonly cited as KSh 500,000 per depositor per institution; confirm the current KDIC limit). Amounts above that limit carry more real risk at thinly capitalised small banks.
Risks and Considerations
- Tier is about market size, not a guarantee of service quality or zero credit risk.
- NPL ratios and capital ratios vary bank by bank. Read the latest published accounts.
- Peer-group labels change when CBK publishes a new appendix. A bank near 5% can move either way.
- Mergers (for example Access Bank–related consolidation) can re-map names and tiers quickly.
How to Choose
- Decide what you need: safety, SME credit, diaspora rails, mortgages or digital convenience.
- Check the bank’s latest CBK peer group and its own capital adequacy disclosures.
- For balances above KDIC cover, prefer stronger large or well-capitalised medium banks unless you accept the risk.
- Compare fees and service, not only the tier label.
Read also: Top Banks in Kenya by Market Share (2026)
Frequently Asked Questions
Is Standard Chartered still a Tier 1 bank in Kenya?
No, not on CBK’s December 2025 classification. Its market-size index was 4.5%, so it sits in the medium peer group (Tier 2).
How many Tier 1 banks are there now?
Eight large banks as at December 2025, down from nine after StanChart’s exit.
Which bank has the highest market-size index?
KCB Bank Kenya at 17.3%, ahead of Equity at 11.8%.
How does CBK classify bank tiers?
Through a weighted market-size index using net assets, deposits, capital and reserves, deposit accounts and loan accounts. Large = 5%+; medium = 1% to under 5%; small = under 1%.
What share do large banks control?
About 69.7% of the composite market as at December 2025 (not “about half of assets” from older summaries).
What is the minimum core capital?
Commercial banks were required to hold at least KSh 3 billion core capital by end-2025. CBK reported seven banks below that floor at year-end. The long-term path toward a higher ceiling has been subject to policy adjustments; confirm the current CBK and Treasury timetable.
Is it safe to use a Tier 3 bank?
Licensed banks are regulated and KDIC covers eligible deposits up to the insured limit. Tier 3 banks are smaller and some face capital pressure. Keep large balances only if you understand the risk.
How many commercial banks are there?
CBK’s 2025 peer-group tables work with 39 commercial banks in the large/medium/small split. Counts can change with mergers and licence actions.
Bottom Line
Kenya’s tier system is a CBK market-size map, not a marketing slogan. After the 2025 supervision data, StanChart is Tier 2, eight banks remain Tier 1, and KCB leads with a wider gap over Equity than in the early 2020s.
Use this list to orient yourself, then verify the latest CBK report and each bank’s own results before you move large deposits, take a big loan or buy shares.
Sources
- CBK Bank Supervision Annual Report 2025 (PDF) — peer groups, market-size index, StanChart medium group, capital breaches
- Central Bank of Kenya
- Tuko – Eight biggest banks; StanChart drops from Tier One (22 September 2026)
- People Daily – Seven banks missed KSh 3bn core capital (22 September 2026)
This guide is for information only and is not investment, deposit or legal advice. Tier rankings and capital status change when CBK and banks publish new data.