Kenya, 1 November 2025 - Equity Group Holdings has posted a record profit after tax of KSh 54.1 billion for the first nine months of 2025, a sharp rebound that underscores the bank’s resilience after a turbulent period marked by internal fraud and mass staff dismissals. The profit represents a 32 percent increase from KSh 40.9 billion in the same period last year, cementing the lender’s position as East Africa’s most profitable bank.
The group’s financial performance was driven largely by stronger interest income, which grew in double digits as lending expanded across key markets, including Kenya, Uganda, and the Democratic Republic of Congo. Net interest income rose by 16 percent year-on-year, supported by what Group Managing Director and CEO James Mwangi described as “a disciplined lending strategy anchored in risk-based pricing and regional diversification.”
Equity’s regional subsidiaries continued to play a pivotal role, contributing significantly to the overall profit. According to the bank’s latest investor briefing, subsidiaries outside Kenya now contribute more than 45 percent of total revenue, a strategic shift that has cushioned the group from localized shocks. The bank also reported robust profitability ratios, with return on average equity (RoAE) standing at about 26.4 percent and return on average assets (RoAA) at 4.1 percent, among the highest in the region.
Yet, beneath the impressive headline numbers lies a reminder of recent challenges. Earlier this year, Equity dismissed approximately 200 employees following revelations of an internal fraud scheme linked to payroll and M-Pesa transactions. The scandal, which reportedly cost the bank close to KSh 1.5 billion, prompted a comprehensive internal review and raised questions about the strength of internal controls.
In response, the bank significantly increased its investment in compliance and staff training. Equity’s financial reports show training and compliance expenditure rose to KSh 847 million in 2025, up from KSh 600 million the previous year. The initiatives include mandatory anti-bribery, fraud-awareness, and data-privacy programs for all employees, reflecting a broader institutional shift toward strengthening governance.
“The profit growth is encouraging, but it should not overshadow the lessons from the fraud incident,” said financial analyst Eric Musau in a statement. “Equity’s size and influence mean that its governance practices set the tone for the wider banking industry.”
The fraud episode also revealed deeper issues about insider collusion risks and the challenges of monitoring complex digital transaction flows in a rapidly expanding ecosystem. Industry observers note that while the bank’s swift recovery demonstrates operational strength, its next big test lies in ensuring that “growth is safe growth.”
Looking ahead, analysts expect Equity to focus on stabilizing operational costs while maintaining its momentum in regional markets. The question remains whether the lender can sustain double-digit lending growth in a macroeconomic environment still shaped by high interest rates and global uncertainty.
Despite these concerns, Equity’s turnaround highlights how a well-diversified regional bank can rebound from operational shocks through a combination of strong governance reforms and strategic expansion. As Kenya’s largest bank by customer base, Equity’s success has ripple effects across the broader economy, fueling SME lending, consumer confidence, and digital financial inclusion.
For now, the KSh 54.1 billion profit marks more than just a financial milestone. It signals a cautious resurgence built on reform, resilience, and renewed discipline, proof that even in an era of digital risks and reputational shocks, a well-managed recovery remains possible.
