Kenyan Banks Dominate Rwanda and DRC Sectors
Kenyan lenders hold large shares of banking assets in several East African neighbors, led by KCB Group and Equity Bank Group.
Updated on Nov. 14, 2026 in Financial Services
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Kenyan banks held nearly 65% of banking-sector assets in Rwanda, 48% in the Democratic Republic of Congo and 29% in Uganda. KCB Group and Equity Bank Group led the regional expansion.
Why it matters
Kenyan banks expanded most strongly in countries where Kenya's exports were growing and where banking sectors showed higher profitability and better asset quality. Regional lenders' growing footprint raises questions about supervision, since most bank-country relationships recorded no joint inspection during the previous decade.
Foreign banks held about 30% of Kenya's banking-sector assets, and international banks held approximately $6.5 billion in cross-border claims on Kenya in 2024. A one-percentage-point rise in Kenya's export growth to a destination market was associated with a 0.2-percentage-point rise in Kenyan banks' overseas asset growth, though the analysis does not establish causation.
The players
KCB Group
KCB Group is one of Kenya's largest banking groups and a leading driver of the company's regional expansion into East African markets.
Equity Bank Group
Equity Bank Group is a major Kenyan lender that has built a significant presence across East African markets through its regional subsidiaries.
The details
Kenyan banks have expanded most sharply in markets where Kenya's exports were growing, with the DRC accounting for about 43% of their regional assets in 2024, up from 10% in 2018. Rwanda, Tanzania and Uganda each accounted for approximately 15% of regional assets. Non-performing loans at KCB and Equity Bank exceeded national banking-sector averages in Kenya, Rwanda and Uganda.
Timeline
2018: The DRC accounted for 10% of Kenyan banks' regional assets.
2024: The DRC's share of Kenyan banks' regional assets reached 43%.
Previous decade: Most bank-country relationships recorded no joint inspection.
November 13, 2026: An IMF working paper on Kenyan bank expansion was published.
Market Dynamics
The expansion of Kenyan banks into neighboring markets fits a broader pattern of East African lenders following trade flows rather than deposit bases alone. The IMF working paper that analyzes this trend suggests that export growth and host-country profitability, not simply market size, shape where Kenyan banks invest.
For retail investors holding shares in KCB Group or Equity Bank Group, the regional expansion shapes future earnings exposure to host-market credit quality. Customers of Kenyan banks operating in Rwanda, the DRC or Uganda may see changes in the lending and deposit products those subsidiaries offer.
The takeaway
Cross-border banking growth tracks trade ties more closely than many depositors assume, so watching where a lender's export-linked markets are heading can help explain its expansion. Investors and customers alike benefit from checking a bank's asset quality in each market it serves.
Further reading
For broader context on how lenders move capital across borders, explore our Financial Services coverage.
Source note: This article includes information reported by Channelafrica.
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