Co-op Bank Rides Digital Banking and MSMEs to Record Ksh11.4B Q1 Profit

By Kibaki Muthamia on May 13, 2026

Co-op Bank has reported its strongest-ever quarterly performance, posting a Profit Before Tax of Ksh11.37B for the first quarter of 2026.

The figure represents an 18.1% jump from the Ksh9.63B recorded during the same period last year, while Profit After Tax rose by 21.3% to Ksh8.41B.

Assets

Co-op Bank’s total assets grew to Ksh884.6B, up from Ksh774.1B a year earlier. Customer deposits also increased sharply to Ksh612.2B, while the bank’s loan book expanded to Ksh436.8B.

Government securities rose to Ksh272.9B, helping strengthen liquidity and diversify earnings.

The bank maintained a strong liquidity position, with a liquidity ratio of 63.4%, alongside improved asset quality. Its Non-Performing Loan ratio dropped to 14.5% from 17% in Q1 2025.

Digital Banking

More than 90% of customer transactions are now happening through digital and alternative channels, underlining how quickly banking habits are shifting in Kenya.

The bank’s infrastructure now includes:

Over 16,200 Co-op Kwa Jirani agents
615 ATMs and cash deposit machines
222 branches across Kenya and South Sudan
619 SACCO front offices

Its customer base has also continued expanding, with account holders now standing at over 9.8M.

Co-op Bank branch in downtown Nairobi (Image: Files)

MSMEs and digital credit

The bank disbursed Ksh19.11B in digital loans during the quarter through its E-Credit platform. Since launch, the platform has processed more than Ksh520B in cumulative disbursements.

Co-op Bank says it currently serves over 264,000 MSMEs through tailored business banking packages, while more than 71,000 businesses received training and capacity-building support during the quarter.

MSMEs now account for:

16.8% of the bank’s loan book
22.6% of customer deposits

Youth Banking

The lender is also aggressively targeting younger customers.

During the quarter, it established a dedicated Youth Financial Services division as part of plans to build a youth customer base exceeding 10 million in the medium term.

The bank says over 100,000 young people accessed financial literacy programmes in Q1 alone, while its mobile banking app now supports fully digital access to money market funds and bond investments.

Subsidiaries

Several Co-op Bank subsidiaries also posted strong performances:

Kingdom Bank nearly doubled profits to Ksh446.2M
Co-op Bancassurance Intermediary grew profits by 39.5%
Co-optrust Investment Services recorded 107.6% profit growth
Co-operative Bank of South Sudan returned to profitability after recording losses last year

In a Nutshell ….

The Q1 results reflect how Kenya’s banking sector is increasingly being shaped by digital transactions, agency banking, SME financing and youth-focused financial products.

For Co-op Bank, the latest numbers suggest a strategy focused less on flashy expansion and more on scale, ecosystem banking and deep penetration into everyday financial activity – from SACCOs and biashara traders to diaspora customers and young mobile-first users.