Stanbic Bank Kenya has carved a niche as a top corporate lender, having led milestone deals like Kenya’s first green bond in 2022 and a Ksh20 billion ($151M) infrastructure syndicate in 2023. CEO Joshua Oigara says the bank is built for long-term resilience, not quarterly glory.
Stanbic Bank Kenya CEO Joshua Oigara speaks during a May 8 investor briefing in Nairobi, where the lender reported a 16.6% drop in Q1 profit to Ksh3.3 billion ($25 million), hit by waning forex trading income as the Kenyan shilling stabilized.
Stanbic Bank Kenya posts KSh 3.3B Q1 2025 profit, down 16.6%, as forex income normalizes. Digital growth and SME lending support long-term resilience.
NAIROBI, Kenya – May 2025 For Stanbic Bank Kenya, the first quarter of 2025 marked the end of an era. After riding the foreign exchange wave in early 2024, the Johannesburg-listed bank saw net profit fall by 16.6% to KSh 3.3 billion, down from KSh 3.9 billion in Q1 2024.
The culprit? A sharp decline in non-interest income, led by a cooling forex market that once fueled record gains.
“We have seen a rebalancing of income drivers,” said Joshua Oigara, CEO of Stanbic Kenya, during an investor briefing on May 8. “Our forex income normalized compared to the exceptional highs of early 2024. That was anticipated, but the pressure remains real.”
📉 From Boom to Bend: Forex Highs No Longer Hold
In early 2024, banks like Stanbic profited handsomely from a volatile foreign exchange market. The Kenyan shilling lost nearly 20% against the US dollar in Q1 2024, creating lucrative arbitrage opportunities.
👉 Related: How Forex Trading Boosted Kenyan Bank Profits in 2024
But that window closed in early 2025 when the Central Bank of Kenya (CBK) stepped in with tighter monetary policy and direct forex interventions. The shilling stabilized at KSh 144 to the dollar, down from its peak near KSh 160, narrowing spreads and muting trader appetite.
“It’s not underperformance—it’s normalization,” noted a Nairobi-based banking analyst. “Last year was an outlier. Q1 2025 is more of a correction than a collapse.”
🏦 Sector-Wide Squeeze in Non-Interest Income
Stanbic is not alone. Other major players — including Equity Group, KCB Group, and Absa Kenya — are also adjusting to a tighter earnings environment as inflation eases and CBK oversight intensifies.
In Q1 2025:
Stanbic’s total operating income dropped 5%
Operating expenses inched up, further squeezing margins
Despite this, the bank emphasized ongoing investment in digital infrastructure and SME lending.
“Over 90% of our transactions now happen digitally,” said Oigara. “That’s a big reason we remain resilient even when markets shift.”
👉 Related: How Kenyan Banks Are Betting Big on Digital Channels
🏗️ Legacy and Strategic Evolution: Stanbic’s Long Kenyan Game
Stanbic Bank has been a part of Kenya’s banking fabric since the 2007 merger of CfC Bank and Stanbic Holdings. It has since carved out a niche in corporate banking, excelling in:
Energy and infrastructure finance
Trade finance
Syndicated lending
Key milestones include:
Facilitating Kenya’s first commercial green bond in 2022
Leading a KSh 20 billion infrastructure deal in 2023
👉 Read more: Stanbic’s Green Bond Leadership in East Africa
But forex and retail segments still matter.
“Stanbic has long punched above its weight in treasury and forex,” said economist Aly Khan Satchu. “When that revenue dips, it shows up quickly.”
