NAIROBI, Kenya — Sidian Bank has reported a sixfold jump in net profit to Sh1.72 billion for the year ended December 2025, buoyed by a surge in low-cost deposits that strengthened earnings and accelerated the lender’s growth into mid-tier banking status.
The bank’s profit rose from Sh287 million a year earlier, marking one of the fastest expansions among Kenya’s lenders as customer deposits climbed sharply while funding costs grew at a slower pace.
The deposit base increased by 62.9 percent, or Sh28 billion, to Sh72.3 billion, allowing the bank to expand income-generating investments.
Interest expenses rose by 23.1 percent to Sh4 billion, significantly below the pace of deposit growth, reflecting the benefit of cheaper funding.
The strategy enabled the lender to widen margins and channel excess liquidity into government securities and other low-risk assets.
A key driver of the deposit surge was the onboarding of public sector accounts.
Government-linked agencies moved funds to the lender, including Nairobi County, which appointed the bank as principal banker for its health facilities before deepening the relationship by transferring additional operations.
The bank has also been named a receiving agent for the Social Health Authority and the Affordable Housing Levy, further boosting its deposit inflows and transaction volumes.
These mandates helped expand the balance sheet and improve earnings visibility.
Financial statements show the deposit growth supported broader balance sheet expansion, with total assets rising by about 50pc to roughly Sh90.8 billion.
Net interest income climbed more than 50pc, while non-interest income more than doubled, lifting total operating income significantly.
The lender invested a large portion of new deposits in Treasury bills and bonds, with holdings in government securities more than doubling.
Income from government paper overtook loans as the bank’s largest revenue stream, highlighting a shift toward lower-risk earnings.
The strong performance helped the Central Bank reclassify the lender into the mid-sized tier after its market share crossed the one percent threshold, reflecting rapid expansion in assets and deposits.
The performance positions Sidian Bank among the fastest-growing lenders in the market, with profitability supported by cheaper deposits, higher investment income, and expanding public sector relationships.
