There are currently 43 commercial banks in the country, 1 mortgage finance company, 6 deposit taking microfinance institutions, 4 representative offices of foreign banks, 112 foreign exchange bureaus and 2 credit reference bureaus.  As at the end of March 2012, there was KES 2.1 trillion held as assets in the Kenyan banking Sector with loans and advances of about KES 1.2 trillion. The deposit base stood at KES 1.6 trillion and the profit before tax of the sector in general stood at KES 24.7 billion as at 31^st March 2012. As at the end of March, the number of customer deposit accounts stood at 14.36 million while the loan accounts stood at 2.032 million accounts.

Comparatively, the banking sector’s aggregate balance sheet expanded by 5% in the quarter from KES 2 trillion in December 2011 to KES 2.1 trillion in March 2012. Gross loans and advances in the sector grew from KES 1.19 trillion in December 2011 to KES 1.24 trillion, about to 4.2% in growth. Deposits were the main source of funding for the banking sector. The deposit base rose by 4.7% from KES 1.49 trillion in December 2011 to KES 1.56 trillion in March 2012, the growth attributed to branch expansion, increased remittances and receipts from exports. The banking sector’s recorded pre-tax profit of KES 24.7 billion for the quarter was a 5.4% decrease from the KES 26.1 billion recorded in the quarter ending in December 2011. Total income in the year stood at KES 88.4 billion in the first quarter of 2012, an 8.9% increase in income from the KES 81.2 billion registered in the fourth quarter of 2011.

In a comment in the report, the Central Bank of Kenya expects the banking sector to sustain its growth momentum largely driven by adoption of cost effective delivery channels and increased presence of Kenyan banks in the East African Community partner states and South Sudan. The risks of inflation and the resulting high interest rates are expected to reduce in the course of the year.

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