Our Capitals

1. Financial Capital

The International Integrated Reporting Council (IIRC) define financial capital as a store of value or a pool of funds
available to an organization. KCB Group sees Financial Capital as a medium of exchange that realizes its value  through conversion into other forms of capital. i.e. Our investors, both debt and equity, play a big part in the makeup of our financial capital and operationalization of our strategy. Additionally, our retained earnings make up part of the financial capital used in the execution and growth of our strategic investments. Whichever form of funding KCB Group sources, it is done at competitive rates, leveraging our financial might to efficiently create and maximize shareholder value. The Group will continue building a resilient and diverse balance sheet, ready to capitalize on emerging opportunities in our existing markets.

2. Human Capital

This is wholesomely, the capability, knowledge, skills and experience that make-up the people that drive our strategy – our staff. We recognize that our people are instrumental in the utilization of our capitals leading to the realization of shared value. The Group strives to ensure our staff have the key competencies required to carry out organizational
activities. We do this through:
• Varied development initiatives such as training sessions on key strategic areas such as Sustainability, Ethics, Anti-Money Laundering & Cyber-Security, Risk management and Business Continuity Management. Furthermore, these
trainings are supplemented with compulsory E-Learning courses that are refreshed annually for relevance.

• Performance based assessment.
• Competitive remuneration packages including benefits such as credit facilities among others.
• Employee wellness programmes including various leave programmes, prayer rooms, medical insurance and checkups.

KCB endeavors to have an inclusive workforce while also striking a balance between experience and youth. This allows for better business continuity management.

3. Intellectual Capital

Our intellectual assets, such as brand value, innovative products, innovation capacity and reputation also play a
key role in growing the business. Strong brand affinity and exceptional innovation capacity keeps us ahead of the curve. In 2018, the bank achieved a brand power score of 29% up 600 basis points from 2017. The research arm of the bank undertakes annual review of our Brand Health with Brand drivers identified and aspects for improvement noted.

We put great impetus on harnessing intellectual capital and undertaking good management of knowledge from Research and Development (R&D). As a result, we generate innovations that improve customer experience, system efficiencies and unlocking of big data potential for product development.

In 2018, we rolled out several products which is testament to the budding innovation emanating from the Group as seen by the revamping of KCB M-PESA. Additionally, we have a huge brand following, with our social media channels very active given our customers demonstration and preference to engage through these channels.

4. Manufactured/Infrastructural Capital

Manufactured capital is defined as those material goods, infrastructure and technology, leased or wholly owned and
whose value is realized in the delivery of products and services. As stated earlier, the Group strives to see the  realization of Financial Capital through conversion to other forms of capital. Thus, manufactured capital is reliant on the deployment and flow of financial capital to allow resources towards it. This allocation of resources forms the basis upon which we run the bank, including information technology software, systems and structures. These drive the channels which are the platforms we interact with our customers. The Group’s manufactured capital is key to sustainable business growth in two facets. Firstly, the Group’s flexibility and resilience in the market is enabled by the efficient use of manufactured capital, allowing it to respond to societal needs, be innovative, and efficiently deliver new products and services to the market. Secondly, manufactured capital and technology can reduce resource use, and system downtime, thus enhancing both operational and cost efficiencies, ensuring sustainable growth.
From the traditional brick and mortar branches to convenience wherever and whenever you may need, we are
tirelessly working on developing platforms that will serve our vast distribution of customers in entirety. We have rolled out different channels that ease access to banking services, without having to walk in to a branch.

5. Social & Relationship Capital

Our social and relationship capital involves the existing and potential collaborations that the Group forms with both our internal and external stakeholders. The Group works to foster these relationships in order to create shared value amongst our stakeholders, improving the collective wellbeing. We look to build the trust that we have been endowed with, as a bank for the generations, having been there for over 120 years.
The relationships we have include, but aren’t limited to:
i) Supply-Chain relationships
ii) Customer experience
iii) Community engagements
iv) Regulatory relationships
v) Competitor relationships
vi) Partnerships


Customer Centricity

Our drive to excel in enabling the progress of our customers by simplifying their world comes about through a consistent focus on delivering quality, timely service to our customers. This is also driven by ensuring our systems’ uptime is above 95%, allowing them to transact at will knowing that they will not be failed by system failure. We also protect the privacy of our customers with measures on data handling and client confidentiality in place to protect the interests of both the customer and the Bank.

Supply-Chain relationships

KCB Group eyes strategic development of the processes, people and supply base so as to improve security and quality of supply in order to optimize value from the total procurement spend of the organization. We have systems and policies in place to ensure that we achieve a higher local percentage of our suppliers in order to create opportunities for our immediate communities. Once the onboarding processes have been followed, we make every effort to offer all our suppliers an equal chance to securing a performance contract. Close co-operation is required to ensure suppliers provide timely and quality services or goods, and upon completion, we ensure that they are fully compensated as per the contract agreement. Smoothening of this P2P process is constantly being done with an eye on achieving efficiencies and synergies.

Community engagements

KCB has embedded in its strategy an intentional bid for increased inclusivity and a push for creation of shared value. In 2018, we pursued to grow business in key customer segments, while unlocking the youth and women agenda. Our Youth flagship program, 2jiajiri, and Igire in Rwanda, both held graduations in 2018, where over 30,000 youth graduated from the program. More on this can be found on page 62.


Whether intentional or not, we form relationships with our competitors and in doing so we set industry standards, forming the benchmark for the Banking industry in the region. Relationships with other organizations for the betterment of societal welfare, such as our partnership with Safaricom on the M-Pesa Foundation, creates shared value for our communities. Our collaborations bring us together in the interest of the banking sector and community welfare.

Regulatory Relationships

We pride in having ethical values that contribute to our outstanding conduct and governance. The Group’s culture is embodied around transparency, disclosure, integrity and adherence of the laws and regulations that are active in regions we operate in. The Group is committed to utmost Legal and regulatory compliance in each of these jurisdictions. Having operating commercial subsidiaries in 6 markets, the Group actively engages the regulators from the different markets and adjusts its operations to apply the strictest of the requirements as the minimum for the businesses. This has enabled the development of systems and procedures to monitor and confirm adherence.


6. Natural Capital

Our Natural Capitals are those stocks of environmental assets/resources that provide a flow of useful goods and/or services. These relate to our impact, directly and indirectly on the environment, and the impact which our customers, suppliers and other stakeholders may have on the natural resources.
We have made significant strides to deepen our commitment towards driving a sustainable business for the future since the KCB Green Agenda that was launched in 2009. We approved Social and Environmental Management System (SEMS) in 2015 which are integrated into our credit system.
This allows us to conduct social & environmental due diligence prior to loan disbursement, during loan tenure
and upon repayment of the loan. Furthermore, in 2017, we adopted and embedded 8 SDG’s into our strategy and quantifying these, to ensure measurability and monitoring. In order to maximize the impact of this adoption, we have revised part of our supplier requirements to include measures and processes that encourage and build on sustainable practices. Beyond this, during the year 2018, we joined a group of 28 other global banks that took part in drafting the 6 Principles for Responsible Lending, that was coordinated by the UNEP Financial Initiative (FI). These principles have been designed with a suitability for banks in both emerging and developed markets. The 6 Principles are Alignment, Impact, Clients and Customers, Stakeholders, Governance and Target Setting, and finally, Transparency and Accountability. This is yet another milestone in the further entrenchment of the sustainability agenda into our strategy and business.