The Central Bank of Kenya (CBK) categorizes banks into three tiers based on their market size, which is determined by factors such as assets, capital, reserves, customer deposits, and loans. Tier 3 banks represent small banks, which command a combined market share of 8.4% according to the latest 2023 Bank Supervision Annual Report by the CBK. These banks are crucial for offering specialized services, often targeting niche markets and specific customer segments.
Here is the updated list of Tier 3 banks in Kenya, with their total net assets and market share index as of 2023:
- HFC Limited
- Total Net Assets: Ksh 59,145,971,000
- Market Share: 0.8%
- Victoria Commercial Bank Plc
- Total Net Assets: Ksh 59,200,750,000
- Market Share: 0.7%
- Bank of Africa Ltd
- Total Net Assets: Ksh 51,723,886,000
- Market Share: 0.6%
- Gulf African Bank Limited
- Total Net Assets: Ksh 42,125,681,000
- Market Share: 0.6%
- Guaranty Trust Bank (Kenya) Limited
- Total Net Assets: Ksh 30,112,267,000
- Market Share: 0.6%
- ABC African Banking Corporation Ltd
- Total Net Assets: Ksh 41,775,949,000
- Market Share: 0.5%
- Sidian Bank Ltd
- Total Net Assets: Ksh 44,738,527,000
- Market Share: 0.5%
- Habib Bank AG Zurich
- Total Net Assets: Ksh 36,125,057,000
- Market Share: 0.4%
- DIB Bank Kenya Ltd
- Total Net Assets: Ksh 26,489,664,000
- Market Share: 0.4%
- UBA Kenya Bank Ltd
- Total Net Assets: Ksh 31,209,553,000
- Market Share: 0.4%
- Premier Bank Kenya Ltd
- Total Net Assets: Ksh 23,304,561,000
- Market Share: 0.3%
- Credit Bank PLC
- Total Net Assets: Ksh 25,721,643,000
- Market Share: 0.3%
- CIB Kenya Bank Limited
- Total Net Assets: Ksh 17,543,453,000
- Market Share: 0.3%
- Kingdom Bank Kenya Limited
- Total Net Assets: Ksh 36,720,398,000
- Market Share: 0.3%
- Development Bank of Kenya Ltd
- Total Net Assets: Ksh 18,840,315,000
- Market Share: 0.3%
- Guardian Bank Limited
- Total Net Assets: Ksh 15,853,010,000
- Market Share: 0.3%
- M-Oriental Bank Kenya Ltd
- Total Net Assets: Ksh 13,859,858,000
- Market Share: 0.2%
- Middle East Bank (K) Ltd
- Total Net Assets: Ksh 18,848,303,000
- Market Share: 0.2%
- Paramount Bank Ltd
- Total Net Assets: Ksh 15,439,383,000
- Market Share: 0.2%
- Access Bank (Kenya) PLC
- Total Net Assets: Ksh 17,119,500,000
- Market Share: 0.2%
- Consolidated Bank of Kenya Limited
- Total Net Assets: Ksh 15,209,512,000
- Market Share: 0.2%
- Spire Bank Limited
- Total Net Assets: Ksh 2,882,182,000
- Market Share: 0.1%
The Role of Tier 3 Banks in Kenya’s Economy
Despite their smaller size, Tier 3 banks play a crucial role in Kenya’s financial ecosystem. They cater to small and medium enterprises (SMEs), offering tailored financial services that may not be available through larger banks. Many of these banks also serve regional markets or specific communities, contributing to financial inclusion in underbanked areas.
Additionally, these banks are subject to regulatory scrutiny by the CBK, ensuring they adhere to sound financial practices despite their lower asset bases compared to Tier 1 and Tier 2 banks.
