Consolidated Bank’s profits up 14-fold on cheap deposits

Consolidated Bank of Kenya's net profit for the half-year to June 2026 grew 14-fold, riding on lower interest expenses following mobilisation of cheap deposits, especially from government institutions.

The state-owned lender recorded a net profit of Sh174.8 million for the six months compared to Sh12 million posted in a similar period a year earlier.

This followed a 26.7 percent drop in interest expenses despite a 12.9 percent expansion of its deposit base to Sh13.5 billion. Banks make money by accepting cash deposits in return for interest payments and then investing that money elsewhere.

The bank's profit is the difference between the interest it pays depositors and the yield it makes through investing.

This is the fastest deposit growth recorded by Consolidated Bank in more than five years, which comes on the back of the National Treasury issuing a circular to state institutions asking them to bank with the lender.