NAIROBI (Xinhua) --
Kenya’s locally owned banks have edged their
foreign-owned counterparts in market domination due to the
support from local growing middle class and expanding corporate
institutions, an official said Tuesday.
cabinet secretary for industry, trade and cooperatives and the
former Chief Executive Officer of the foreigner-owned Barclays
Bank Kenya, also attributed the market domination to local
knowledge issues, with locals able to develop products that most
suit the needs of their core customers.
“Local banks have
also been able to tailor their products to the needs of their
customers because being local, they have a better understanding
of the kind of financial solutions they require,” Mohamed told
investors in Nairobi.
“There are several
factors that have made local banks emerge top. We have a growing
middle class in Kenya which is now banking more. We also have
realized rise of local corporates and government institutions
which prefer to work with local financial institutions,” said
middle class is boosting retail banking and products such as
mortgages and personal loans and is likely to continue to drive
adoption of credit cards, which have high penetration among high
net-worth customers, according to analysis by consulting firm
Oxford Business Group.
Data from Central
Bank of Kenya (CBK), which was released last year, shows that
top three dominant banks are all local.
It puts KCB Bank as
the largest bank in Kenya with an asset base of 4.8 billion U.S.
dollars and 3.3 billion dollars in loans.
The second ranked
bank is Equity Bank with 3.8 billion dollars in assets and a
loan portfolio of 3.3 billion dollars.
which operates as the banker for savings and credit societies in
the country is ranked as the third bank by the CBK.
shareholders are mostly small-scale farmers who are members of
the cooperative societies. It has an asset base of 3.5 billion
foreign-owned banks in Kenya are Standard Chartered and Barclays
Kenya with an equal asset base of 2.6 billion dollars, data from
the CBK shows.
A survey done last
year by consulting group PwC shows local Kenyan-owned banks
Equity and KCB dominate the large cross-border banking group in
terms of size and subsidiaries with each having a presence in
six and seven countries respectively.
PwC said this growth
has made Kenya the largest beneficiary of the share of intra-Sub
Sahara Africa trade.