integrated report & financial statements

KCB Group Integrated Report and Financial Statements 2018 has been prepared for the period 1 January 2018 to 31 December 2018 and covers the activities of KCB Group Plc, its subsidiary companies, its divisions and key strategic investments.

Group Chairman's Statement

Group Chairman’s Statement

KCB Group delivered on its promises for 2018 on the back of a sustained and managed lending strategy, coupled with the step change in our digital offering. My assessment of the Group’s performance is good and within the overall budget. This success was not without headwinds such as the aftermath of the 2017 electioneering period in Kenya and changes to the regulatory landscape, both somewhat redefining the business growth trajectory.

Group Chairman's Statement

Taarifa ya Mwenyekiti wa Kundi

Kampuni ya KCB lilitimiza ahadi zake za 2018 kutokana na mkakati endelevu wa ukopeshaji pamoja na uboreshaji wa huduma za kidijitali. Utathmini wangu wa matokeo ya Kampuni ni kwamba ni ya kuridhisha na yanalingana vyema na bajeti kwa jumla. Ufanisi huu ulipatikana licha ya changamoto kadha kama vile athari za kipindi cha uchaguzi mkuu wa 2017 nchini Kenya. Uchaguzi huo uliathiri kwa jumla mazingira ya uendeshaji biashara. Pia, kulitokea mabadiliko ya kisheria. Mambo haya mawili yaliathiri kwa kiasi fulani ukuaji wa biashara yetu.

Group Chairman's Statement

CEO’s Letter to shareholders

Reflecting on last year, the Group’s performance to a large extent mirrors what was happening across the East African region with a general rebound of most economies and the strength witnessed in an otherwise difficult operating environment. This positive performance is a reflection of the business model that we employed to serve our customers, a highly motivated staff, a visionary Board and continued support from you, our esteemed shareholder.

Group Chairman's Statement

Kwa Mwenyehisa Mpendwa

Matokeo ya Benki hii kwa kiwango kikubwa ni sawa na hali ilivyokuwa kanda ya Afrika Mashariki ambapo mataifa mengi yalianza kuimarika tena kiuchumi na kuwa na nguvu, licha ya mazingira ya kibiashara kuwa magumu. Matokeo haya ya kuridhisha ni ishara ya muundo bora wa kibiashara ambao tumekuwa tukiutumia kuwahudumia wateja wetu. Tuna wafanyakazi wenye motisha, Bodi yenye maono na tunapokea uungwaji mkono kutoka kwako, mwenyehisa mpendwa. Unaposoma ripoti hii, utapata kwa kina hali halisi ya matokeo yetu ya kifedha.

Group Chairman's Statement

Report From The Group Chief Finance Officer

The Group delivered a strong bottom-line performance on the back of operational efficiency supported by implementation of IFRS 9 (day one adjustments). However, top-line growth was subdued, an indication of the tough business environment we operated in across all our markets. As anticipated, the hangover of 2017’s double election in Kenya hit businesses in the first half of 2018 with tight liquidity that pushed up both cost of funds and non-performing loans.

Value Creation process