Half Year 2026 KCB Group PLC Earnings Call

August 12, 2026

[Company Representative] (KCB Foundation): He has represented Kenya at the East Africa Games, bringing home medals despite limited resources.

Speaker #1: And 200 meters. He has represented Kenya at the East Africa Games, bringing home medals despite limited resources.

Mendi Njonjo: Bramwell atakuwa amechukuliwa na aende kusoma. Kila atabadilisha kwetu. Maybe atatujengea nyumba.

Speaker #2: You were programmed with. Watakuwa wamechukuliwa na aende kusoma. Kila atabadilisha kwetu. Maybe atatujengea nyumba, na kwa familia tuliko juu kidogo ni kung'ang'ana tu, ndio tupate cha kula.

[Company Representative] (KCB Group): Na familia tuko juu kidogo, ni kugangana tu ndio tupate cha kukula.

[Company Representative] (KCB Foundation): Through the KCB Scholars Programme, Bramwell hopes to pursue his education while also chasing his dream of becoming an Olympic champion like his idol, Usain Bolt. In the informal settlement of Nyalenda, Kisumu County, lives Grace Akinyi. Raised by her disabled grandmother after losing her mother, Grace has grown up fast in a world shaped by hardship.

Speaker #1: To the KCB Scholars Program, Braml hopes to pursue his education while also chasing his dream of becoming an Olympic champion like his idol, Usain Bolt.

Speaker #1: In the informal settlement of Nyalenda Kisumo County, recording in progress. Raised by her disabled grandmother, after losing her mother, Grace has grown up fast in a world shaped by hardship.

Mendi Njonjo: Changamoto nimesapitia nyingi. Namaana shule bila hata kula. Hata wakati wa kufanya mitihani, headteacher ndiye alinisaidia. Ninapitia ngumu sana.

Speaker #2: Changamoto nimeshapitia mengi. Wanaendana shule, bila hata kochi. Hata wakati wa kufanya mitihani, head teacher alinisaidia. Mimi napitia ngumu sana.

Speaker #1: During the home verification visit with the KCB Scholars Selection Panel, any doubt Grace had earned her place was removed. She scored 61 out of 72 points in her KEJI SEA exams from Kibuye Primary School.

[Company Representative] (KCB Foundation): During the home verification visit with the KCB Scholars selection panel, any doubt Grace had earned her place was removed. She scored 61 out of 72 points in her KCSE exams from Kibuye Primary School and dreams of becoming a doctor.

Speaker #1: Of becoming a doctor.

Grace Akinyi: My grandmother was a businesswoman and she got an accident. So from that, she could not do any business.

Speaker #3: My grandmother was a businesswoman, and she had an accident, so after that she could not do any business.

[Company Representative] (KCB Foundation): In Nairobi's Eastlands area of Kayole, Stephen Mbuya shares a single room with his mother and two younger siblings.

Speaker #1: In Nairobi's Eastlands area of Kayole, Stephen Buya shares a single room with his mother and two younger siblings, engineering. Ndiyo mimi niko amespa hiyo na uncle yangu.

Stephen Mbuya: Toka grade 2 ilikuwa hard kulipa school fees. Mimi future nikataka kuwa anayebisha engineering. Ndio mimi nimeipya na uncle yangu.

[Company Representative] (KCB Foundation): Deep in Kajiado County in Osilalei, Jane Namila, the eldest daughter in a family of eight, reflects on the hardship she endured while growing up. She had to balance her schoolwork with supporting her mother's beadwork to help provide for the family as her father, who is blind, was unable to work.

Speaker #1: Deep in Kajiado County in Osila Lei, Jane Namila, the eldest daughter in a family of 8, reflects on the hardship she endured while growing up.

Speaker #1: She had to. Balance her schoolwork with supporting her mother's beadwork to help provide for the family, as her father, who is blind, was unable to work.

Jane Namila: Wakati nikuwa nasoma, kuna wakati mwingi nilikuwa nafanya ndani kwa ajili ya school fees. Sia uniform, nilikuwa tatizu wengine.

Speaker #3: Wakati nilikuwa nasoma, kuna wakati mwingi nilikuwa nakaa nyumbani. Kwa ajili ya school fees. Pia uniform. Nilikuwa tatizo ingine.

Speaker #2: Ila imeangururu sababu kulinda Mungu. Ilikuwa kwamba wale nyamurugu, mara moja dhoruba unakera ulimi.

[Company Representative] (KCB Group): Igraimi yangu lulu sa vu ole nga mungu. Iwa vamba vale nya modugu. Ava modu ava tukuvu nager ole. Tau vu ogunde isuma. Temalo kibarua.

[Company Representative] (KCB Foundation): To at all, Jane learned resilience early, carrying responsibilities far beyond her years and hopes to be a doctor in future. These select scholars represent 1,000 scholars selected into the 2026 KCB Scholars cohort from every corner of Kenya. Their journeys are different, but their hope is shared.

Speaker #1: Through it all, Jane learned resilience early, carrying responsibilities far beyond her years, and hopes to be a doctor in the future. These select scholars represent 1,000 students selected into the 2026 KCB Scholars Cohort from every corner of Kenya.

Speaker #1: Their journeys are different, but their hope is shared.

[Company Representative] (KCB Group): Ningeweza kushukuru tu KCB kwa kunipa hii scholarship. Itaweza kunisaidia kwa maisha yangu na pia kusaidia wazazi wangu.

Speaker #2: Ningeweza kumshukuru tu KCB kwa kunipatia scholarship. Nitaweza kunisaidia kwa maisha yangu. Na pia kusaidia wazazi wangu.

Jane Namila: Nashukuru kwanza. Kwanza itasoma kwa bidii sasa nimepata hii scholarship.

Speaker #3: Nashukuru kwanza. Halafu nitasoma kwa bidii. Nimempa hii scholarship. I would like to appreciate the KCB Scholars. They have helped my grandmother and my family.

Grace Akinyi: I would like to appreciate the KCB Scholars. They have helped my grandmother and my family.

[Company Representative] (KCB Foundation): The 2026 KCB Scholars cohort was commissioned across various KCB branches nationwide in ceremonies attended with partners and KCB Group leadership.

Speaker #1: The 2026 KCB Scholars Cohort was commissioned across various KCB branches nationwide, in ceremonies attended by partners and KCB Group leadership.

[Company Representative] (KCB Group): Today is a day of hope and a day of possibility. It's a new beginning for most of us. It's a nice journey to start, and we hope that all of us will walk this journey together.

Speaker #2: Today is a day of hope. And a day of possibility. It's a new beginning for most of us. It's a nice journey to start, and we hope that all of us will walk this journey together.

[Company Representative] (KCB Group): I wish to commend KCB for its steadfast commitment to education. Your support is a strong vote for confidence in both the potential of our youth and the future of our country. This initiative serves as a bridge to opportunity and a launchpad for future leadership and innovators.

Speaker #4: I wish to commend KCB for its steadfast commitment to education. Your support is a strong vote of confidence in both the potential of our youth and the future of our county.

Speaker #4: This initiative serves as a bridge to opportunity and a launchpad for future leaders and innovators.

Mendi Njonjo: This year, we celebrate the admission of over 1,000 scholars who today are getting admitted into the 2026 cohort with 77 of you special students joining us today. Everything that you need has been taken care of. Your work is to make sure you deliver your academic performance, make sure you are a well-rounded student. So we encourage you to keep a clear sense of purpose and belief in your potential.

Speaker #2: This year, we celebrate the admission of 1,000 scholars who today are getting admitted into the 2026 Cohort, with 77 of you special students joining us today.

Speaker #2: Everything that you need has been taken care of. Your work is to make sure you deliver your academic performance and ensure you are a well-rounded student.

Speaker #2: So we encourage you to keep a clear sense of purpose, and belief in your potential.

[Company Representative] (KCB Group): For people of Kenya.

Speaker #5: Oh, people forever!

[Company Representative]: Initially, we were getting our food from our kitchen here, but the food was being prepared using firewood. We thank God right now we've at least transformed from that other one to the clean energy whereby now we are only using the gas to prepare all our meals and this one has really transformed even the entire school, right from the life of our students that are here, and also the lives of the cooks and even the teachers.

Speaker #6: So initially we were using or we were getting our food from our kitchen here. But the food was being prepared using firewood. We thank God for right now we were being transformed from that other one to the green energy where by now we are only using the gas.

Speaker #6: There all our meals. And this one. Really transformed even the entire school right from the life of our students that are here and also the lives of the cooks and even the teachers.

[Company Representative] (KCB Group): Sasa hapa ndani ya jikoni, naona mabadiliko wakati gasi ameingia. Wakati wa kuni, wafanyakazi wa jikoni walikuwa na ugonjwa mwingi. Maruhi na kufuwa macho pia kutokana na moshi. Lakini sasa vile gasi imeingia, naona tu kama naweza kupumzika kidogo. Unaweza kuweka chakula watoto late kidogo lakini anaenda haraka haraka.

Speaker #7: Sasa hapa ndani ya jikoni naona mabadiliko wakati hii gasi imeingia. Wakati wa kuni, wafanyakazi wa jikoni walikuwa tu na magonjwa mingi. Saa zingine, kufua unasikia tu kuungua macho pia kunaletewa na moshi.

Speaker #7: Na siku hizi, gasi vile gasi imeingia saa hii, naona tu nini kidogo. Naona tu kama naweza kupumzika kidogo, unaweza kuweka chakula ya watoto late kidogo, lakini anaenda haraka haraka.

Speaker #6: I would recommend this LPG gas to other schools. The reason being first of all it will save on time. Because the gas we readily available.

[Company Representative]: I would recommend this LPG gas to other schools. Reason being, first of all, it will save on time because the gas will be readily available. There will be no complaint of maybe time wastage, maybe while searching for firewood and all that. Then again, while using firewood, you cut down trees, and that one will in turn result into soil erosion, which can also make the soil lose its fertility, and this one can also result into loss in agricultural production. If we use this one, we will not waste firewood because we now will be using gas and not cutting down the trees. We thank KCB Foundation for supporting us to be able to get this particular gas and the project. Thank you.

Speaker #6: So there will be no complaint of maybe time wastage maybe while searching for firewood and all that. And then again you know that while using firewood you cut down trees.

Speaker #6: And that one will in turn result into soil erosion. Which can also make the soil lose its fertility and this one can also result into loss in agricultural production.

Speaker #6: So if we use this one we will not waste firewood because we will now be using gas and not cutting down what? The trees.

Speaker #6: And we thank KCB Foundation for supporting us to be able to get this particular gas and the project. Thank you.

Speaker #3: I guess from now let's. Nikuwe professional football. Nataka pia niendeleshe masomo yangu pia into another level. Na pia I would like to be a coach.

[Company Representative]: From now, nataka niwe professional football. Nataka pia niendeleshe masomo yangu into another level, na pia I would like to be a coach. What made me fall in love with football ilikuwa football inalipa. Nilioona wenzangu wanacheza, wanapata kiasi wana-support nao familia zao. So that one made me love football na ika nipatia courage ya mi pia kutaka kusaidia familia yangu through football. Nilijoin Maliera Senior School when I was in form 2, term 3, because waliniona nikicheza kwa school games then wakakuwa interested the way I was playing, na wakanambia nijoin Maliera Senior School. Then they told me the benefits na kunambia how Maliera Senior School was prospering well in football. Nimemaliza shule 2025 na football imeniisaidia sana kwa sababu through football nimekuwa able to kucheza kwa national team. Nimepata call-ups na pia imeniisaidia kucheza kwa World Cup. Pia I was among the ladies who participated in the World Cup.

Speaker #3: What made me fall in love with football ilikuwa the football inalipa. Niliona wenzangu wanacheza, wanapata kakitu, wanasupport nayo familia zao. So that one made me love football.

Speaker #3: Na ikanipatia hiyo ukarajamiti ya kutaka kusaidia familia yangu through football. Nilijiunga na Madira when I was in Form 2, Term 3, because waliniona nikicheza kwa school games, then wakakuwa interested na the way I was playing.

Speaker #3: Na wakaniambia nijoin Madira. Then they told me the benefits na kuniambia hao Madira was prospering well in football. Na nimemaliza shule 2025 na football imenisaidia sana.

Speaker #3: Kwa sababu through football nimekuwa able to kucheza kwa national team. Nimepata hizo, I was among the ladies who participated in the World Cup. Pia imenisaidia kulipa school fees zangu mpaka nimalize shule.

[Company Representative]: Pia imeniisaidia kulipa school fees zangu mpaka nimalizie shule. KCB imetuisaidia sana. Unapata kuna familia wengine wako down kulipa school fees, KCB always comes up and wanasaidia kulipa school fees. Pia inamotivate kwa sababu iko na team pia. Tunapowajiona wakicheza, sisi pia tunapona hiyo urge ya kucheza. Tunapowajiona wakicheza, sisi pia tunapona hiyo urge ya kucheza. Term 3, because waliniona nikicheza kwa school games then wakakuwa interested the way I was playing, na wakanambia nijoin Maliera Senior School. Then they told me the benefits na kunambia how Maliera Senior School was prospering well in football. Nimemaliza shule 2025 na football imeniisaidia sana kwa sababu through football nimekuwa able to kucheza kwa national team. Nimepata call-ups na pia imeniisaidia kucheza kwa World Cup. Pia I was among the ladies who participated in the World Cup. Pia imeniisaidia kulipa school fees zangu mpaka nimalizie shule.

Speaker #3: KCB imetusaidia sana because imesaidia unapata kuna familia wengine wako down kulipa school fees. KCB always comes up and wanasaidia kulipa school fees. Pia inatumotivate pia kwa sababu iko na team pia yenye tukiona hao pia wakicheza si pia tunakuwa na hiyo urge ya kucheza.

Speaker #3: Yenye tukiona hao pia wakicheza si pia tunakuwa na hiyo urge ya kucheza. Term 3. Because waliniona nikicheza kwa school games then wakakuwa interested the way I was playing.

Speaker #3: Na wakaniambia nijoin Madira. Then they told me the benefits na kuniambia hao Madira was prospering well in football. Na nimemaliza shule 2025 na football imenisaidia sana.

Speaker #3: Kwa sababu through football nimekuwa able to kucheza kwa national team. Nimepata hizo collabs. Na pia imenisaidia kucheza kwa World Cup. Pia I was among the ladies who participated in the World Cup.

Speaker #3: Pia imenisaidia kulipa school fees zangu mpaka nimalize shule.

Peter Mora: Testing. Let's kindly settle down so that we can start our event. Thank you very much everybody for coming. I hope I'm audible enough. Very audible. Our Group Chairman, Dr. Joseph Kinyua, board members present, our Group CEO, Paul Russo, senior leadership team, our staff who are joining us for this session, shareholders, stockbrokers, investors, analysts, fund managers, our media partners who are here with us. Ladies and gentlemen, good afternoon. Good afternoon again. My name is Peter Mora. I'm going to be your MC today for this session. I beg that we all pay attention and be part of this event. Allow me to welcome you to this event, and before we proceed, I'll ask our Security Manager, Simon, to come and give us a few highlights, then I'll proceed.

Operator: Testing. Let's kindly settle down so that we can start our event. Thank you very much everybody for coming. I hope I'm audible enough. Very audible. Our Group Chairman, Dr. Joseph Kinyua, board members present, our Group CEO, Paul Russo, senior leadership team, our staff who are joining us for this session, shareholders, stockbrokers, investors, analysts, fund managers, our media partners who are here with us. Ladies and gentlemen, good afternoon. Good afternoon again.

Speaker #2: Test team, let's kindly settle down so that we can start our event. Thank you very much, everybody, for coming. I hope I'm audible enough.

Speaker #2: Very audible. Our group chairman Dr. Joseph Kinyua. Board members present. Our group CEO Paul Russo. Senior leadership team. Our staff who are joining us for this session.

Speaker #2: Shareholders, stockbrokers, investors, analysts, fund managers, and our media partners who are here with us—ladies and gentlemen, good afternoon. Good afternoon again. My name is Peter Mwaora.

Operator: My name is Peter Mora. I'm going to be your MC today for this session. I beg that we all pay attention and be part of this event. Allow me to welcome you to this event, and before we proceed, I'll ask our Security Manager, Simon, to come and give us a few highlights, then I'll proceed.

Speaker #2: I'm going to be your MC today for this session. I beg that we all pay attention and be part of this event. So, allow me to welcome—proceed, I'll ask our Security Manager, Simon, to come and give us a few highlights, then I'll proceed.

Simon Moneke: Good afternoon. Sorry. Thank you. Sorry. My name is Simon Moneke from Security Department, and I'm the one who's giving the security brief on behalf of hotel management. We are in the first floor, Mount Kenya. We have our security safety in case there is any emergency. We have our smoke detectors, fire detectors. We have sprinklers within the building that in case of fire, they are going to arrest the fire. In case you are supposed to evacuate the building, you are supposed to come out of Mount Kenya, you go straight forth, you find a door, you push the door, you go direct to first ground floor, where you'll find a swimming pool. Then you move on your right height. You'll find an exit door where you go to our garden area. If you're in the center of this floor, there is a white stairs.

Simon Mwaniki: Good afternoon. Sorry. Thank you. Sorry. My name is Simon Mwaniki from Security Department, and I'm the one who's giving the security brief on behalf of hotel management. We are in the first floor, Mount Kenya. We have our security safety in case there is any emergency. We have our smoke detectors, fire detectors. We have sprinklers within the building that in case of fire, they are going to arrest the fire.

Speaker #8: Good afternoon. Sorry. My name is Simon Mwaneki from Security, Security Brief, on behalf of Hotel Management. We're on the first floor, Mount Kenya. We have our security and safety in case there is any emergency.

Speaker #8: We have a smoke detectors. Fire detectors. We have spring grass within the building. That in case of fire they are going to arrest the fire.

Speaker #8: In case you are supposed to evacuate the building, you are supposed to come out of Mount Kenya. You go straight forward, you find a door, you push the door, you go direct to the first ground floor where you find a swimming pool. Then you move on your right hand, you find an exit door where you go to the garden area.

Simon Mwaniki: In case you are supposed to evacuate the building, you are supposed to come out of Mount Kenya, you go straight forth, you find a door, you push the door, you go direct to first ground floor, where you'll find a swimming pool. Then you move on your right height. You'll find an exit door where you go to our garden area.

Speaker #8: If you're in the center of this floor there is a white stairs you go to ground floor then you maneuver straight forward you'll find an restaurant you see where our assembly point is.

Simon Mwaniki: If you're in the center of this floor, there is a white stairs. You go to ground floor, then you maneuver straight forth. You will find an al fresco restaurant. You see where our assembly point is. We request you to take care of your valuables. That is your money, your laptop, and anything that is of value to you. In case anybody comes to you to pretend to be in need, please do not assist them. Advise them to go to the reception, there will be assistance there.

Simon Moneke: You go to ground floor, then you maneuver straight forth. You will find an al fresco restaurant. You see where our assembly point is. We request you to take care of your valuables. That is your money, your laptop, and anything that is of value to you. In case anybody comes to you to pretend to be in need, please do not assist them. Advise them to go to the reception, there will be assistance there. Any assistance you need from our staff, our staff, they have a logo for Radisson Blu. In case of any medical issue, we request you to go to the ground floor. You go to the reception, you will be advised on our on-call doctor. In case of any minor injuries, we have our first aiders within the hotel.

Speaker #8: We request you to take care of your valuables—that is, your money, your laptop, and anything that is of value to you. In case anybody comes to you pretending to be in need, please do not assist them.

Speaker #8: If you need any assistance, please go to the reception; there will be someone to assist you there. Any assistance you need from our staff—they will have a logo for Radisson Blu. In case of any medical issue, we request you go to the ground floor, to the reception, and you'll be advised on our on-call doctor.

Simon Mwaniki: Any assistance you need from our staff, our staff, they have a logo for Radisson Blu. In case of any medical issue, we request you to go to the ground floor. You go to the reception, you will be advised on our on-call doctor. In case of any minor injuries, we have our first aiders within the hotel.

Speaker #8: In case of any minor injuries, we have our first aiders within the hotel. In every department, we have our first aiders; you'll be facilitated, and any assistance will be given from there.

Simon Moneke: In every department, we have our first aiders, you will be facilitated, and any assistance will be given from there. Any transport, we request you take our hotel cab, which is at the ground floor. We have a truck for our cab. That is in case of any emergency, we will be able to connect with the driver and you will be assisted. We have police on-site, CPU, that is within the premises for day and night. In case of any external threats, we have APU, which is 1 kilometer from here, you will be assisted. Thank you, and have a productive meeting.

Simon Mwaniki: In every department, we have our first aiders, you will be facilitated, and any assistance will be given from there. Any transport, we request you take our hotel cab, which is at the ground floor. We have a truck for our cab. That is in case of any emergency, we will be able to connect with the driver and you will be assisted.

Speaker #8: Any transport we request, you take our hotel car, which is at the ground floor. We have a tracker for our car so that in case of any emergency, we'll be able to connect with the driver and you'll be assisted.

Speaker #8: We have police on site TPU that is within the premises for day and night, and in case of any external threat, we have a TPU which is a kilometer from here. You'll be assisted.

Simon Mwaniki: We have police on-site, CPU, that is within the premises for day and night. In case of any external threats, we have APU, which is a kilometer from here, you will be assisted. Thank you, and have a productive meeting.

Speaker #8: Thank you and have a productive meeting.

Speaker #2: Thank you. Please clap for him. Thank you very much. Also, to note, this event is being streamed live on our socials, as well as for our socials, so let's also note that there are cameras. When you're moving, please note where the cameras are placed so that you don't interrupt the production.

Peter Mora: Thank you. Please clap for him. Thank you very much. Also to note, this event is being streamed live on our socials, as well as in four of our socials. So let's also note that there are cameras. When you are moving, please note where the cameras are placed so that you don't go to interrupt the production. So I will ask that we all stand so that we can play the national anthem and the East African anthem. While we are still standing, allow me to commit this session to the Lord, thanking Him for the opportunity to come together. May we be guided by His wisdom in our discussions, and may He give us clarity of thought. We remember and appreciate all those whose dedication and hard work has made us be here and celebrate this progress together as we proceed.

Operator: Thank you. Please clap for him. Thank you very much. Also to note, this event is being streamed live on our socials, as well as in four of our socials, so let's also note that there are cameras. When you are moving, please note where the cameras are placed so that you don't go to interrupt the production.

Speaker #2: So I'll ask that we all stand so that we can play the National Anthem and the East African Anthem. While we are still standing, allow me to commit this session to the Lord, thanking Him for the opportunity to come together. May we be guided by His wisdom in our discussions and may He give us clarity of thought. We remember and appreciate all those whose dedication and hard work has made it possible for us to be here and to celebrate this progress together. As we proceed, may our conversations inspire confidence, foster understanding, and strengthen our resolve to build a better KCB and a better future for all of us. We ask this through the Lord our God.

Operator: I will ask that we all stand so that we can play the national anthem and the East African anthem. While we are still standing, allow me to commit this session to the Lord, thanking Him for the opportunity to come together. May we be guided by His wisdom in our discussions, and may He give us clarity of thought. We remember and appreciate all those whose dedication and hard work has made us be here and celebrate this progress together as we proceed.

Peter Mora: May our conversations inspire confidence, foster understanding, and strengthen our resolve to build a better KCB and a better future for all of us, and the rest, as we ask this through the Lord our God. Amen. Thank you, and you may have your seat. So we will have a few presentations today, and we will start with our Group Chairman, who is going to set the context, set the stage for us as we venture into the numbers. The Group CEO will come and make his presentation, and then the Group Finance Director will come and close for us. Then we can go into the Q&A session. So at this point, allow me to invite our Group Chairman, Dr. Joseph Kinyua, to come and make his speech. After that, Chairman, I will request that you invite the Group CEO to make his presentation. Thank you.

Operator: May our conversations inspire confidence, foster understanding, and strengthen our resolve to build a better KCB and a better future for all of us, and the rest, as we ask this through the Lord our God. Amen. Thank you, and you may have your seat. So we will have a few presentations today, and we will start with our Group Chairman, who is going to set the context, set the stage for us as we venture into the numbers.

Speaker #2: Amen. Thank you, and you may have your seat. We'll have a few presentations today. We'll start with our Group Chairman, who is going to set the context—set the stage for us as we venture into the numbers. The Group CEO will then come and make his presentation, and finally, the Group Finance Director will come and close for us.

Operator: The Group CEO will come and make his presentation, and then the Group Finance Director will come and close for us. Then we can go into the Q&A session. So at this point, allow me to invite our Group Chairman, Dr. Joseph Kinyua, to come and make his speech. After that, Chairman, I will request that you invite the Group CEO to make his presentation. Thank you.

Speaker #2: Then we can go into the Q&A session. So at this point allow me to invite our group chairman Dr. Kenywa to come and make his speech.

Speaker #2: And after that chairman I'll request that you invite the group CEO to make his presentation. Thank you.

Speaker #8: Thank you.

Joseph Kinyua: Thank you.

Joseph Kinyua: Thank you peter.

Peter Mora: Thank you. Asante.

Operator: Thank you.

Speaker #2: Thank you.

Speaker #7: Good afternoon ladies and gentlemen. Afternoon once again. Okay. Group board members present. Group CEO Paul Huson. Senior management team and staff. Stock brokers investors analysts and fund managers our media partners ladies and gentlemen good afternoon once again.

Joseph Kinyua: Good afternoon, ladies and gentlemen.

Joseph Kinyua: Good afternoon, ladies and gentlemen. Afternoon once again. [Foreign language] Okay. Group board members present, Group CEO, Paul Russo, senior management team and staff, stockbrokers, investors, analysts, and fund managers, our media partners, ladies and gentlemen, good afternoon once again.

Simon Moneke: Good afternoon.

Joseph Kinyua: Afternoon once again.

Simon Moneke: Afternoon.

Joseph Kinyua: Okay. Group board members present, Group CEO, Paul Russo, senior management team and staff, stockbrokers, investors, analysts, and fund managers, our media partners, ladies and gentlemen, good afternoon once again.

Speaker #7: On behalf of the Group Board of Directors, I welcome you to this ceremony as we release the KCB Group 2026 half-year financial results.

Simon Moneke: Good afternoon.

Joseph Kinyua: On behalf of the Group Board of Directors, I welcome you to this ceremony as we release the KCB Group 2026 H1 financial results. Thank you for finding time to join us today, physically or virtually, as we reflect on our performance for the past 6 months. Before I proceed, I wish to thank all our shareholders. This includes all our stakeholders, including shareholders, customers, staff, regulators, and other partners for their unwavering support and trust in our business over the years. We are who we are. That is the bank of choice because of you. I acknowledge the directors of the KCB Group board and subsidiary for their dedication and continued support and commitment to providing oversight, governance, and effective leadership to our business. May I request those who are present today to stand so that we can appreciate them?

Speaker #7: Thank you for finding time to join us today. Physically or virtually as we reflect on our performance for the past six months. Before I proceed I wish to thank all our shareholders this includes all our stakeholders including shareholders customers staff regulators and other partners for their unwavered support and trust in our business.

Joseph Kinyua: This includes all our stakeholders, including shareholders, customers, staff, regulators, and other partners for their unwavering support and trust in our business over the years. We are who we are. That is the bank of choice because of you. I acknowledge the directors of the KCB Group board and subsidiary for their dedication and continued support and commitment to providing oversight, governance, and effective leadership to our business. May I request those who are present today to stand so that we can appreciate them?

Speaker #7: Over the years, we are who we are—that is, the bank of choice—because of you. I acknowledge the directors of the KCB Group board and subsidiaries for their dedication, continued support, and commitment to providing oversight, governance, and effective leadership to our business.

Speaker #7: May I request those who are present today to stand so that we can appreciate them. Directors, can you please stand up so that we can appreciate you.

Joseph Kinyua: Directors, can you please stand up so that we can appreciate you? Thank you. Okay, continue. In the same breath, allow me to thank the group leadership team led by the Group CEO, Mr. Paul Russo, for diligently steering the business of our bank. Ladies and gentlemen, before we get to the results, allow me to mention three key things, key in terms of giving us the context. Firstly, the operating environment. The ripple effects of the Middle East geopolitical conflict have continued to negatively impact business and households. More importantly, commodity price volatility and supply interruptions, which I know if you take, for reason, the case of oil that we put in our vehicles, we have been part of those who have been affected.

Speaker #7: Thank you. Okay continue. In the same breath allow me to thank the group leadership team led by the group CEO Mr. Paul Huson for diligently steering the business of our bank.

Speaker #7: Ladies and gentlemen, before we get to the results, allow me to mention three key things, important in terms of giving us the context. Firstly, the operating environment.

Joseph Kinyua: Firstly, the operating environment. The ripple effects of the Middle East geopolitical conflict have continued to negatively impact business and households. More importantly, commodity price volatility and supply interruptions, which I know if you take, for reason, the case of oil that we put in our vehicles, we have been part of those who have been affected.

Speaker #7: The ripple effects of the Middle East geopolitical conflict have continued to negatively impact business and households more importantly commodity price volatility and supply interruptions which I know if you take for reason the case of oil that we put in our vehicles we have been part of those who have been affected.

Speaker #7: Secondly East Africa continues to distinguish a silver as one of the continent's most resilient and attractive investment destination. With growth projected at approximately 4.3% in 2026 anchored by strong growth prospects of the economies of Uganda, Rwanda, Tanzania and Kenya.

Joseph Kinyua: Secondly, East Africa continues to distinguish itself as one of the continent's most resilient and attractive investment destinations, with growth projected at approximately 4.3% in 2026, anchored by strong growth prospects of the economies of Uganda, Rwanda, Tanzania, and Kenya. The macroeconomic outlook for the year, the remaining part of the year, looks very positive. Lastly, for KCB, as you will see from the data which I will highlight shortly, our diversified regional business model continued to be a big strength, allowing us to provide households and businesses with the financial solutions they need to navigate a complex global environment. Ladies and gentlemen, our regional diversification strategy continues to be an anchor to our performance. It is indeed one which has been making us perform, as you will see later in terms of detailed results.

Speaker #7: The macroeconomic outlook for the remaining part of the year looks very positive. Rightly for KCB, as you will see from the data which I will highlight shortly, our diversified regional business model continues to be a big strength, allowing us to provide households and businesses with the financial solutions they need to navigate a complex global environment.

Joseph Kinyua: Lastly, for KCB, as you will see from the data which I will highlight shortly, our diversified regional business model continued to be a big strength, allowing us to provide households and businesses with the financial solutions they need to navigate a complex global environment. Ladies and gentlemen, our regional diversification strategy continues to be an anchor to our performance. It is indeed one which has been making us perform, as you will see later in terms of detailed results.

Speaker #7: Ladies and ladies and gentlemen our regional diversification strategy continues to be anchored to our to be an anchor to our performance it is indeed one which has been making us perform as you will see later in terms of detailed results.

Speaker #7: The subsidiaries recorded an impressive performance delivering 29.6% of the overall profit before tax and that 1.6% of the total gross assets. At the same time we continue to pursue robust sheet balance balance sheet optimization strategy focused on investing where returns are attractive protecting capital and deepening our service model for customers.

Joseph Kinyua: The subsidiary has recorded an impressive performance, delivering 29.6% of the overall profit before tax and 31.6% of the total gross assets. At the same time, we continue to pursue robust balance sheet optimization strategy focused on investing where returns are attractive, protecting capital, and deepening our service model for customers. This set of financial results speaks to the resilience of our franchise, the trust of our customers, the soundness of the decisions we continue to take, and the disciplined execution of risk and capital management policies. Ladies and gentlemen, on governance, I wish to reiterate that the KCB Group structure remains solid. We have instituted governance frameworks that are not only aligned with regulatory requirements, but also benchmarked against global best practices. These structures ensure clear delineation of roles and responsibilities, fostering a culture of integrity, innovation, and regional operational. Sorry, and operational excellence.

Speaker #7: This set of financial results speaks to the resilience of our franchise the trust our customers the soundness of the decisions we continue to take and the disciplined execution of risk and capital management policies.

Joseph Kinyua: This set of financial results speaks to the resilience of our franchise, the trust of our customers, the soundness of the decisions we continue to take, and the disciplined execution of risk and capital management policies. Ladies and gentlemen, on governance, I wish to reiterate that the KCB Group structure remains solid.

Speaker #7: Ladies and gentlemen, on governance, I wish to reiterate that the KCB Group structure remains solid. We have instituted governance frameworks that are not only aligned with regulatory requirements but also benchmarked against global best practices.

Joseph Kinyua: We have instituted governance frameworks that are not only aligned with regulatory requirements, but also benchmarked against global best practices. These structures ensure clear delineation of roles and responsibilities, fostering a culture of integrity, innovation, and regional operational. Sorry, and operational excellence.

Speaker #7: These structures ensure clear delineation of roles and responsibilities fostering a culture of integrity innovation and regional operational of and sorry and operational excellence. Ladies and gentlemen our efforts in embedding responsibility and sustainability in all aspects of business and operations have consistently yielded positive results for the bank.

Joseph Kinyua: Ladies and gentlemen, our efforts in embedding responsibility and sustainability in all aspects of business and operations have consistently yielded positive results for the bank. The bank continued to make progress on the environmental, social, and governance front. Specifically, we are proud of the successful launch of the Mapato Sukuk Bond. That is by KCB Bank Tanzania. You know in Kiswahili, nkumu kindogo hapo. Whose inaugural issuance was, you won't believe it, oversubscribed by 302%, raising TZS 30.24 billion against a target of TZS 10 billion. This is a clear demonstration of strong investor confidence and the growing appetite for Shariah-compliant and ethical investment instruments. Ladies and gentlemen, our bank does not just focus on financial profits, but it does care. It cares for the communities in which it operates.

Speaker #7: The bank continued to make progress on the environmental social and governance front specifically we are proud of the successful launch of the Maputo Sukukum board.

Speaker #7: That is by the Bank of Tanzania you know Nikiswahili Ngumu Kindogo hapo. Whose inaugural inch was was you believe it oversubscribed by 302% raising Tanzanian shilling 30.24 billion against a target of 10 billion Tanzanian shillings.

Joseph Kinyua: Whose inaugural issuance was, you won't believe it, oversubscribed by 302%, raising TZS 30.24 billion against a target of TZS 10 billion. This is a clear demonstration of strong investor confidence and the growing appetite for Shariah-compliant and ethical investment instruments. Ladies and gentlemen, our bank does not just focus on financial profits, but it does care. It cares for the communities in which it operates.

Speaker #7: This is a clear demonstration of strong investor confidence and the growing appetite for sharia compliant and ethical investment instruments. Ladies and gentlemen our bank does not just focus on financial profit but it does care it cares for the communities in which it operates.

Speaker #7: Through the work of our social investment arm, that is KCB Foundation, our focus is on supporting youth enterprise, education, financial inclusion, and climate resilience initiatives that expand economic opportunities and improve our communities.

Joseph Kinyua: Through the work of our social investment arm, that is KCB Foundation, our focus is on supporting youth enterprise, education, financial inclusion, and climate resilience initiatives that expand economic opportunities and uplift our communities. Ladies and gentlemen, looking at the H2 of the year, we remain optimistic about the overall business outlook. The board is dedicated to maintaining excellence in corporate governance, anchored by an effective compliance and risk management culture to always foster trust and confidence in the bank. Ladies and gentlemen, as I close my remarks, I take this opportunity to appreciate once again our customers for the continued trust, our employees for their dedication, our regulators for their continued support, and our shareholders for their faith in the KCB Group brand. Allow me at this point to now invite Paul to present an overview of the performance of our bank over the last 6 months.

Speaker #7: Ladies and gentlemen looking at the second half of the year we remain optimistic about the overall business outlook. The board is dedicated to maintaining excellence in corporate governance anchored by an effective compliance and risk management culture to always foster trust and confidence in the bank.

Joseph Kinyua: The board is dedicated to maintaining excellence in corporate governance, anchored by an effective compliance and risk management culture to always foster trust and confidence in the bank.

Speaker #7: Ladies and gentlemen, as I close my remarks, I take this opportunity to appreciate once again our customers for their continued trust, our employees for their dedication, our regulators for their continued support, and our shareholders for their faith in the KCB Group brand.

Joseph Kinyua: Ladies and gentlemen, as I close my remarks, I take this opportunity to appreciate once again our customers for the continued trust, our employees for their dedication, our regulators for their continued support, and our shareholders for their faith in the KCB Group brand. Allow me at this point to now invite Paul to present an overview of the performance of our bank over the last six months. Thereafter, we will take any questions you may have. [Foreign langage]. Thank you. God bless you.

Speaker #7: Allow me, at this point, to now invite Paul to present an overview of the performance of our bank over the last six months. Thereafter, we'll take any questions you may have.

Joseph Kinyua: Thereafter, we will take any questions you may have. Asanteni sana. Thank you. God bless you.

Speaker #7: Asana thank you. God bless you.

Paul Russo: Thank you, Chairman. I think it is still afternoon. Good afternoon, everyone. I know we have colleagues online. We do have other participants online. I will try and be brief so that Lawrence can have all the time he needs. Please make sure that you ration your questions according to how much time someone has spent on the podium. Please, those who are asking questions, you need to note down. I think, Chairman, directors, and everyone in the room, I think from the onset, I want to acknowledge some special colleagues that are in the room. We have the top performing branches represented by branch managers of KCB Kenya in the room. Just stand so that people can see how. Yeah. That is how high performers look like, yeah? That is how leaders of high-performing teams look like.

Speaker #2: Thank you chairman I think you still afternoon good afternoon everyone I know you have colleagues online we do have other participants online I'll try and be brief so that Lawrence can have all the time he needs and please make sure that you ration your questions according to how much time someone has spent on the podium.

Speaker #2: So please please those who are asking questions you need to note down. But I think chairman and directors and everyone in the room I think from the onset I want to acknowledge some special colleagues that are in the room we have the top performing branches represented by branch managers of KCB Kenya in the room just stand so that people can see how yeah so that's our high performers look like yeah and that is how how leaders of high performing teams look like just just see them again and I think give them a round of applause.

Paul Russo: I think, Chairman, directors, and everyone in the room, I think from the onset, I want to acknowledge some special colleagues that are in the room. We have the top performing branches represented by branch managers of KCB Kenya in the room. Just stand so that people can see how. Yeah. That is how high performers look like, yeah? That is how leaders of high-performing teams look like.

Paul Russo: Just see them again and I think give them a round of applause. Please have a seat. We may just ask them to ask you questions later for Harambee, but we will not ambush you for this purpose. I think I also wanted to acknowledge, as usual, the presence of 2 shareholders, very loyal shareholders. They are dressed in red and I asked them, is it a power dressing? Because it is Valentine and they are the ones who employ us, I thought, Chairman, I should mention their presence because I had seen them and they are very loyal. So a round of applause to them. I mean it on a serious note, I think we agreed with Lawrence, don't deny, that you will spend more time just trying to articulate some of those numbers.

Speaker #2: Please have a seat. We may just ask them to ask you questions later for but we will not ambush you for this purpose. I think I I also wanted to acknowledge as usual the presence of two shareholders very loyal shareholders and you know the the they addressed in they addressed in red and I asked them is it a power dressing but because it is voluntary and they are they are they are the ones who employer I thought chairman I should mention their presence because I had seen them and they're very loyal so a round of applause to them.

Paul Russo: They are dressed in red and I asked them, is it a power dressing? Because it is Valentine and they are the ones who employ us, I thought, Chairman, I should mention their presence because I had seen them and they are very loyal. So a round of applause to them. I mean it on a serious note, I think we agreed with Lawrence, don't deny, that you will spend more time just trying to articulate some of those numbers.

Speaker #2: And I and I mean it on on a serious note I think we agreed with Lawrence don't deny that you will spend more time you know just trying to to to articulate some of those numbers.

Speaker #2: On the slide right in front of you on the screen just a bit of a challenging operating environment with opportunities growth opportunities pockets of opportunities.

Paul Russo: On the slide right in front of you on the screen, just a bit of a challenging operating environment with opportunities, growth opportunities, pockets of opportunities. I think in the Eastern African region and the markets that we operate in, we have seen robust GDP growth relative to other markets. I think even if you look at the post MPC report by the Central Bank of Kenya, and compare the regions, moderate inflation. But I think, particularly in the country that we are in, pressure on interest rates, uncertainty will continue. We saw yesterday, CBK, as we all predicted, held the CBR rate. The Middle East yo-yo, I think we do not know whether now to trust what Trump says. One day there is peace, one day there is bombing. The other day there is, who understands English, obliteration. It becomes a little bit difficult to predict on that front.

Speaker #2: I I think in the Eastern African region and the markets that we you know we operate in we've seen robust GDP growth relative to to to to to other markets.

Speaker #2: I think even if you look at the post MPC report by the central bank of Kenya and compare you know the regions moderate inflation but I think particularly in the country that we are in pressure on interest rates uncertainty will continue we saw yesterday CBK as we all predicted held the CBR rate the Middle East yoyo I think we don't know whether now to trust what Trump says one day this peace one day this bombing the other days this who understands English obliteration so it becomes a little bit difficult to to to predict on that front.

Paul Russo: I think, particularly in the country that we are in, pressure on interest rates, uncertainty will continue. We saw yesterday, CBK, as we all predicted, held the CBR rate. The Middle East yo-yo, I think we do not know whether now to trust what Trump says. One day there is peace, one day there is bombing. The other day there is, who understands English, obliteration. It becomes a little bit difficult to predict on that front.

Speaker #2: I think if you ask me across the region geopolitics will continue to be to be a big concern we we obviously you know have the interest rates pressure and therefore we have to feature prove our institution and you'll see later some of the things that we've done to try and you know future proof.

Paul Russo: I think if you ask me, across the region, geopolitics will continue to be a big concern. We obviously have the interest rate pressure, and therefore, we have to future-proof our institution, and you will see later some of the things that we have done to try and future-proof. For a long time, and I know David is in the room, this slide has had 30 million customers. I am proud that in year 4, I can start presenting 42 million customers. That just shows that when you put your head onto something and decide you are going to do some of those things, moving from, I think when I first made a presentation on these results as a CEO, I think we were 30.1 or something like that, just thereabout.

Speaker #2: For a long time and I know David is in the room this slide has had 30 million customers so I'm proud that in year four I can start presenting 42 million customers that's just shows that when you put your head onto something and decide you're going to do do some of those things moving from I think when I first made a presentation on this results as a CEO I think we are 30.1 or something like that just there about so these these these these chairman and and and all stakeholders shows that the work we've been doing in the last say four years is starting to pay and and pay pay pay significantly.

Paul Russo: I am proud that in year 4, I can start presenting 42 million customers. That just shows that when you put your head onto something and decide you are going to do some of those things, moving from, I think when I first made a presentation on these results as a CEO, I think we were 30.1 or something like that, just thereabout.

Paul Russo: This, Chairman, and all stakeholders, shows that the work we have been doing in the last 4 years is starting to pay and pay significantly. That uplift also on merchants, I think we were stable for a long while. People ask me, why did you acquire Riverbank Solutions? You can see that number on merchants and agents as we go into the details, that number is ticking up significantly. And I see Nick, he is the only guy who does not put on, of all my direct reports, he is the guy who refuses to put on a tie. I do not think he has even one, and I do not think he also has a pair of leather shoes. But I keep reminding him that he reports to me.

Paul Russo: I see Nick, he is the only guy who does not put on, of all my direct reports, he is the guy who refuses to put on a tie. I do not think he has even one, and I do not think he also has a pair of leather shoes. But I keep reminding him that he reports to me.

Paul Russo: Again, starting to get value of investing in Riverbank Solutions and working together to scale up, I think is just the start of that bit for us. And I always say, this institution, I never close without saying, behind this institution is 11,429 staff. If you multiply on average for Africa and multiply times 5, then you will know the number of people that we support directly. If you think about looking at the M-PESA for those 11,429, you can think about how they support. Chairman spoke about foundation, that we are beyond profit, but we also have to think about the pride we have for our staff and the contribution they make. The colleagues that are here are just a special representation of the 11,429. Obviously, when you know how the markets and some of them could not make here.

Paul Russo: If you think about looking at the M-PESA for those 11,429, you can think about how they support. Chairman spoke about foundation, that we are beyond profit, but we also have to think about the pride we have for our staff and the contribution they make. The colleagues that are here are just a special representation of the 11,429. Obviously, when you know how the markets and some of them could not make here.

Paul Russo: A bit of tick up and you will see later on the branches. I am always asked, why are you adding more branches? I do not shy saying that I come from a constituency that still does not have a branch. It is called Laisamis Constituency. It does not have a bank. So why should we be excluded? We must continue to invest. I do not know whether Jane is here. So Jane Isiaho, Silpa, you are here representing Jane, so you know what I have said in public. It must make a business case. You can also ask the foundation to fund them to open a branch, because it is our social investment side. I think on a light note, if we make these numbers, especially I am raising for Lawrence, so I have to try and be comical a little bit so that the numbers look to be fun.

Paul Russo: I do not know whether Jane is here. Jane Isiaho, Silpa, you are here representing Jane, so you know what I have said in public. It must make a business case. You can also ask the foundation to fund them to open a branch, because it is our social investment side. I think on a light note, if we make these numbers, especially I am raising for Lawrence, so I have to try and be comical a little bit so that the numbers look to be fun.

Paul Russo: The slide right in front of you depicts our institution. I think the only point I will make is we are just into the final step on approval for Pesapal. Because investors will ask what he is spending, I think it is just a competition authority for Tanzania. I think we have all the other approvals. Cosmas is in the room, and he has promised me we will get it on Monday. So no pressure, Cosmas. That is why we paid your flight for you to come here, to confirm. I joke. The truth is we are already working deeply with Pesapal. A lot of progress in a number of our subsidiaries. I think it will just now recognizing the 23% or so when we get to that space. I am trying to throw around so that I check you are not asleep.

Paul Russo: Cosmas is in the room, and he has promised me we will get it on Monday. So no pressure, Cosmas. That is why we paid your flight for you to come here, to confirm. I joke. The truth is we are already working deeply with Pesapal. A lot of progress in a number of our subsidiaries. I think it will just now recognizing the 23% or so when we get to that space. I am trying to throw around so that I check you are not asleep.

Paul Russo: I always say this, and one single point on this slide is what differentiates KCB with others is the level of governance and the depth of governance. It will be the base and the foundation for the sustainability of this institution. I have said in different forums, it is one of the things that we will defend. Because if you want a sustainable institution, it is anchored on governance. I am proud today, chairman, of the work that we have done in embedding and living, truly living the governance as required. I will not go through leadership teams. Just to tell you, no one has moved on. No one. It is the same team I introduced the last time. That is how stable shareholders that we are, yeah? That predictability is important. I favor sometimes a bit of turnover, but it is not happening.

Paul Russo: I am proud today, chairman, of the work that we have done in embedding and living, truly living the governance as required. I will not go through leadership teams. Just to tell you, no one has moved on. No one. It is the same team I introduced the last time. That is how stable shareholders that we are, yeah? That predictability is important. I favor sometimes a bit of turnover, but it is not happening.

Paul Russo: It means you as truly, chairman, when we come to my balance scorecard, you can then see that I am a good leader. I have kept these guys. Truly an amazing institution for us to work for and to serve. Let me take you briefly, and you can see I am moving fast as I promised. We set out a 2024-2026 strategy, transforming today together. We are coming to the tail end of that. We will have a 2027-2029 strategy plan. When I think, and if you ask me, it will be a continuation, it will be an overlap. I think I used this term earlier this morning. It is moving from incremental to ambition to scale. That probably is what is going to change. We have spent the last four years, probably the first two years of my leadership, cleaning up. Maybe 18 months if you want to do that.

Paul Russo: We are coming to the tail end of that. We will have a 2027-2029 strategy plan. When I think, and if you ask me, it will be a continuation, it will be an overlap. I think I used this term earlier this morning. It is moving from incremental to ambition to scale. That probably is what is going to change. We have spent the last four years, probably the first two years of my leadership, cleaning up. Maybe 18 months if you want to do that.

Paul Russo: We've spent the other 18 or so months pushing on performance. It's starting to reflect. We've made significant investments in technology to leapfrog, and we made acquisitions. It is time to scale. You'll start seeing that coming through. 2027, 2029 will be about reaping the benefits of that investment in the period that we've worked at. I don't want to preempt what Lawrence will say, but just a bit on those initiatives, I want to highlight only maybe two. Digital leadership. If you have the KCB mobile banking app, you can actually place your money right now into a money market fund under KCB Investment Bank. No sweat, nothing. You can make your investment. I think you must have seen something called Common Sense for Kenya. It doesn't make sense to move your money from the bank to a mobile and then to pay.

Paul Russo: I don't want to preempt what Lawrence will say, but just a bit on those initiatives, I want to highlight only maybe two. Digital leadership. If you have the KCB mobile banking app, you can actually place your money right now into a money market fund under KCB Investment Bank. No sweat, nothing. You can make your investment. I think you must have seen something called Common Sense for Kenya. It doesn't make sense to move your money from the bank to a mobile and then to pay.

Paul Russo: Just pay directly from our app to the till, whether it's a KCB till or a Safaricom, M-PESA, Airtel, it's all those ones. You don't need to do what I call hop, step, and jump. It is expensive. It takes your time, and you know customers are very important people, extremely important. So don't waste your time. You want to open an account, you can open an account online. You've got to be able to do that. Sense are not common to everybody, just like sense is not common to everybody. So we must sell. Angela, I think I'm doing a pitching for you and Rosalind, and I can see you guys doing a handshake. Don't do the hop, step and Fanya mara moja, sindio? Pay account to whatever you want to pay. Take your money back to your account. Don't do kona kona. Tunapadana?

Paul Russo: You want to open an account, you can open an account online. You've got to be able to do that. Sense are not common to everybody, just like sense is not common to everybody. So we must sell. Angela, I think I'm doing a pitching for you and Rosalind, and I can see you guys doing a handshake. Don't do the hop, step and Fanya mara moja, sindio? Pay account to whatever you want to pay. Take your money back to your account. Don't do kona kona. Tunapadana?

Paul Russo: I think Cosmas in the last, Tanzania, because they are online. For the last six, no, four months or so, wameamuka sana wana. Wameamuka sana. Wameongelea sana. Yeah. Wamekua digital in the last four months. The momentum on Boostisha, the work that they've done on agency banking and the number of work they've done with Nick. Although, Nick, I don't know whether you've been told. For me, I always say thank you for what you've done yesterday. What are you going to do tomorrow? I was an American before I was born Rendile, so that's how we work. So we have to try and push. My view is in the end, payments will get to zero in terms of cost. The signal of pay na mbao with PesaLink is just a direction of travel. Very soon, paying will be zero. Angela, I think we've discussed it.

Paul Russo: For me, I always say thank you for what you've done yesterday. What are you going to do tomorrow? I was an American before I was born Rendile, so that's how we work. So we have to try and push. My view is in the end, payments will get to zero in terms of cost. The signal of pay na mbao with PesaLink is just a direction of travel. Very soon, paying will be zero. Angela, I think we've discussed it.

Paul Russo: We'll get to zero. We are bold as Kenya Bankers. We went with a number of banks on Lipa na Mbao, and we've seen the numbers have ticked up. So price matters for this adoption. Now, people tell me, "Oh, Paul, but then where are the numbers and profits?" Engage on ecosystem from there. That's what is going to win the game. 360-degree view of our customer, optimization of their business by managing those inefficiencies. They grow, you grow. It'll no longer be a game of just making money out of customers. It is sad that it's coming from a CEO and chair of Kenya Bankers, but it's a pity we just have to accept, and it's coming. We launched MoFaya in Rwanda. It's a digital lending solution and serving solutions through partnership with MTN that has over 6 million mobile money users.

Paul Russo: It'll no longer be a game of just making money out of customers. It is sad that it's coming from a CEO and chair of Kenya Bankers, but it's a pity we just have to accept, and it's coming. We launched MoFaya in Rwanda. It's a digital lending solution and serving solutions through partnership with MTN that has over 6 million mobile money users.

Paul Russo: That is going to be a significant game changer. I think for a while, we have been trying to deliver that technology capability into these markets. Cosmas, you have no reason not to be the next. Hivi this is a problem of attending physical sessions, Cosmas. Ngo kwapa ndile ngine zing'okutaja. Mobile loan disbursement grew by 25% to KES 314 billion in H1, KES 1.7 billion per day. Angela, una zonga zonga? Zonga zonga. Yeah. Well done to all the teams that have been involved, and the leadership of Mark. When we say we want to go to Singapore, people Mark joined us from PayPal. Is not it PayPal? PayPal from Singapore. You can see what the numbers are looking like. There is something about Singapore. Mark, thanks for leaving Singapore to come to the real Singapore, which is KCB.

Paul Russo: Mobile loan disbursement grew by 25% to KES 314 billion in H1, KES 1.7 billion per day. Angela, una zonga zonga? Zonga zonga. Yeah. Well done to all the teams that have been involved, and the leadership of Mark. When we say we want to go to Singapore, people Mark joined us from PayPal. Is not it PayPal? PayPal from Singapore. You can see what the numbers are looking like. There is something about Singapore. Mark, thanks for leaving Singapore to come to the real Singapore, which is KCB.

Paul Russo: I think, Anastasia, we discussed, we can get to around KES 3 billion by end of year, per day. Siju lisema we are moving from incremental to scale. We have to demonstrate ambition. I always say that there is no board that has been supportive than our board. Sometimes because I am a Catholic and we do not confess in public, but we do confess. You must confess. There is no support we have not received. We have to scale. Customer CVPs, I think Morris is now trending. Where is Morris and David and Co? Morris I do not speak your Queen's English, but the transactions that you have been able to deliver under the KCB Investment, put us in the right space and the right level of discussions. I think we have been battling about positioning KCB Investment.

And now let's say that there's no board that has been supported than our board.

and sometimes because I'm a Catholic and we don't confess in public, but we do confess

you must confess.

There is no support. We have not received.

So, we have to scare.

Paul Russo: Customer CVPs, I think Morris is now trending. Where is Morris and David and Co? Morris I do not speak your Queen's English, but the transactions that you have been able to deliver under the KCB Investment, put us in the right space and the right level of discussions. I think we have been battling about positioning KCB Investment.

uh,

Customers' CVPs, I think Morris is now training. Where is Morris?

More is.

You know, I don't speak your queen's English, but, uh, the transactions that you've been able to deliver under the case, be investment.

Um, you know, I've put us in the right place in the right level of discussions. Um,

Paul Russo: Well done to you and your team on the work that you have done in that pillar. Again, for a long time, and branch managers will confirm, they used to process and corporate papers on bid bonds. Now only one touch. One touch. Even if Mandera kuna bid bond. I think it is important, chairman talked about KCB Mapato Sukuk Bond, in Tanzania, 302% oversubscribed TZS 30.2 billion for Tanzania. I think, it is on the back of another one that was successful and was fully settled. This just reflect things that we can do. I spoke about consolidated agency banking under Nick and the work that we are doing, trying to reshape that. For a while, I think, just bringing Airtel also onto line is something that we should be proud of as DFS, and hopefully that then transitions to the rest of the subs that is in Kenya.

I think uh We've we've been battling about positioning in case you be Investments so well done to you and your team on the work that you've done um in in that in that period.

You know.

Again, for a long time—and branch managers will confirm this—they used to process and cooperate papers on bid bonds. Uh, now it's one touch.

so,

And, um, I think it's important. Chairman talked about kcb map.

Paul Russo: I think, it is on the back of another one that was successful and was fully settled. This just reflect things that we can do. I spoke about consolidated agency banking under Nick and the work that we are doing, trying to reshape that. For a while, I think, just bringing Airtel also onto line is something that we should be proud of as DFS, and hopefully that then transitions to the rest of the subs that is in Kenya.

In Tanzania, 302 of a subscribed 30.2 billion—uh, for Tanzania.

And and and I think um, you know it's on the back of another 1 that was successful and was fully fully settled.

Um, this just reflects, um, you know, things that we can do.

I spoke about Consolidated agency banking under Nick, and the work that we are doing, um, you know,

Trying to to to reshape that.

Um for a while, I think uh, you know, just bringing are till also on to on to line is something that we should be proud of as DFS and hopefully that then transitions to the rest of the subs that's in Kenya.

Paul Russo: Trying to get solutions that go with somebody's faith. We have the first Islamic faith compliant credit card. Inaitwa KCB SAHL Mastercard World Elite Credit Card. Hio mtu lazima asame yake ilikuwa na O. That English only comes from Kinye William Asiko's side, yeah? Because by the time they pick that name. I think it is starting to be relevant to some of these communities with Sahl Banking is significantly big. It is probably a tier 3 bank on its own, if I am not wrong. Now bringing in some of these solutions, we will scale up Sahl Banking and close that out for us. On technology, we have made significant investments in technology. I might end up taking more questions than Lawrence at this rate. On technology evolution, I think, a bit of work has been done in that setup.

and uh,

Trying to get solutions that go with somebody's face.

you know, we have the first

Islamic faith compliant.

Credit card.

World Elite credit card.

English only comes from side. Yeah.

Because by the time they said that name, but...

I, I think it's starting to be relevant to some of these communities with Assad banking is

Paul Russo: Now bringing in some of these solutions, we will scale up Sahl Banking and close that out for us. On technology, we have made significant investments in technology. I might end up taking more questions than Lawrence at this rate. On technology evolution, I think, a bit of work has been done in that setup.

Significantly big. It's it's probably at tier 3 Bank on its own if I'm not wrong. But now bringing in some of these Solutions will will scale up um sahal Banking and and and close that out for us.

I want technology. We've made significant investments in technology.

Paul Russo: TMB finally onto the same core banking system as the rest of the bank, therefore we can layer the products on top of what we have in the rest of the subs. I always say, if TMB colleagues are listening to me, I've said this is the best year for TMB. The next is Flight, my friend. I can see you in the house. Esi mama akwone so that, he leads digital. When I see you nodding, in our language, this is yes, we are together. So don't say later that your yes is like this. I've seen you do like this. So just tell Yannick you promised everything while we're in the room, yeah? You'll get support from Angela and everyone, Nick as well, you are there. We will have to deliver that scale.

On technology Evolution, I think, um, you know, speed of work has been done in that setup, um, you know, tmb finally onto the same core banking system as as the rest of the bank and therefore, we can layer the products on top for what we have, um, in the rest of the subs. And I always say, if tmb colleagues are listening to me, I've said this is the best year for

And the next is flight, my friend and I can see you in the house.

so that

You know.

He leads a digital.

Paul Russo: When I see you nodding, in our language, this is yes, we are together. So don't say later that your yes is like this. I've seen you do like this. So just tell Yannick you promised everything while we're in the room, yeah? You'll get support from Angela and everyone, Nick as well, you are there. We will have to deliver that scale.

Uh, you know.

And when I see you nodding in our language, this is yes, we are together.

So don't say later that you are. Yes, it's like this. I've seen you do it like this. So just tell me—you promise everything while we're in the room. Yeah.

Paul Russo: I think on the back of a new credit workflow system, we have to scale up volumes on credit, because then it's a straight through process. Turnaround time will ease as we go forward. So proud about that piece, but we need to see the volumes. I think chairman talked about shared prosperity. I'm just flashing certain numbers for our foundation, also sustainability, piece of work, the work that Eric Naivasha and team are doing, Mendy Njonjo and team. Truly proud of the numbers that they're delivering. You'll probably see a lot more in Q3 in terms of the solarization of schools, and technical institutions. Counties, I've seen a number of them that, Anastasia, you've signed for Kenya. I've asked Eric, that's enough for Kenya. What about the region? So tukutane nimaitend.

Um you'll get support from Angela and everyone and Nick as well, you are there. Uh we will have to to to deliver that skill.

I think we we on the back of a new credit workflow system, we have to scale up volumes on credit because then it's straight through process. Turnaround time will is as we go forward. Um, so so proud about that piece, but I need we need to see the volumes.

Paul Russo: I'm just flashing certain numbers for our foundation, also sustainability, piece of work, the work that Eric Naivasha and team are doing, Mendy Njonjo and team. Truly proud of the numbers that they're delivering. You'll probably see a lot more in Q3 in terms of the solarization of schools, and technical institutions. Counties, I've seen a number of them that, Anastasia, you've signed for Kenya. I've asked Eric, that's enough for Kenya. What about the region? So tukutane nimaitend.

I think German talked about shared prosperity.

um, I think I'm just flashing certain numbers for our foundation, um, and also sustainability, um, you know, piece of work, the work that Eric neverash and Tim are doing and men in John Joe and team. Uh, truly proud of of, of the numbers that the the delivery. Um, you'll probably see a lot more.

In quarter 3, in terms of, you know, the solarization of schools, um, and Technical institutions Counties have seen. A number of them that Anastasia have signed for Kenya, but I've asked Eric, that's enough for Kenya. What about the region?

Paul Russo: As you look at this slide, because I'm not going through it, I just want to point out one. KCB Group was named East Africa's leading bank in the bankers top 1,000 world banks 2026. That brings me to, Lawrence, as you warm up, that brings me to what I always say off the cuff, and colleagues understand, the four things that are going to drive this institution. Number one, we've said we are going to deliver sustainable performance. In the past, we've yo-yoed. We've seen our numbers, the way they're moving. We are going to stay on sustainable performance. So if you meet a KCB person who can tell you that number one is performance, there's a problem. Right? So sustainable performance. It's credible. It's what we are going to focus on. If you deliver that, I'll tell you what then happens as I go.

So, to put

As as as you look at this slide because I'm not going through through it. I just want to point out 1, Casey group was named East Africa's leading Bank in the bankers top 1,000 World, Banks 2026.

Paul Russo: Number one, we've said we are going to deliver sustainable performance. In the past, we've yo-yoed. We've seen our numbers, the way they're moving. We are going to stay on sustainable performance. So if you meet a KCB person who can tell you that number one is performance, there's a problem. Right? So sustainable performance. It's credible. It's what we are going to focus on. If you deliver that, I'll tell you what then happens as I go.

And and, and that brings me to Lawrence as you warm up, that brings me to what I always say of the C and colleagues, understand the 4 things that are going to drive this institution.

Number one, we've said we are going to deliver sustainable performance.

In the past with yoyo.

We've seen our numbers. With the weather moving, we are going to stay on sustainable performance. So if you meet a case and the person who can tell you that number one is performance, there's a problem.

Uh. Hey, oh

Right, so sustainable performance. We are, it's, it's, it's, it's credible. It's, it's what we are going to focus on and, and, and if you deliver that,

Paul Russo: Number two is reduction of NPL and NPL stock. I made that commitment to investors. It's starting to show. It needs to move a lot faster. Number three, commercialization of acquisitions and technology investments. Deeply committed about that. Riverbank, TMB, BPR are top. That needs to be on that table. Where is Dennis? You think you can hide. We've given you a lot of money. No, just Yeah. Now it's starting to show. That is the reason why you can do 1.7 billion per day is because of the technology investment that we've put in place. Because of the key resources that we've brought in place. Now it's starting to check in. It needs to check in faster. Right. The fourth one is meaningful dividends. I have put my neck on the line. We are getting to 35% payout ratio.

I'll tell you what, then happens as I go. Number 2 is reduction of npl and npl stock.

I made that commitment to investors.

It's starting to show.

It needs to move a lot faster.

Number 3, commercialization of Acquisitions and Technology Investments.

Deeply committed about that River Bank, tmb BPR at top, that needs to be on that.

I think you're going to we've given you a lot of money, you know, just

Paul Russo: Now it's starting to show. That is the reason why you can do 1.7 billion per day is because of the technology investment that we've put in place. Because of the key resources that we've brought in place. Now it's starting to check in. It needs to check in faster. Right. The fourth one is meaningful dividends. I have put my neck on the line. We are getting to 35% payout ratio.

Yeah. Now it's starting to show that is the reason why you can do 1.7 billion per day is because of the technology investment that we put in place because of the key resources that we brought in place. Now it's starting to it needs to check in faster.

Paul Russo: By the end of this year, we will get to the 50% payout ratio as per policy. Shareholders have been patient with us. They have given us money. They have invested in us. They have waited. They got zero in 2023. It is time to pay back. The only way you can do that is by doing the three. Have you realized the connection? You must deliver on the performance. You must reduce your NPL, isn't it? You must get investment out of your spend, value out of your spend. There is a connection in all of them. That is the Bible preaching according to St. Paul. It has to sink. It has to sit. We are proud about what we have done. We have done cleanup. We have started performance. Nobody will question we are accelerating, but sustainably. Not just for numbers. Not for numbers.

Right. Um and then the fourth 1 is Meaningful. Dividends I have put my neck on line. We are getting to 35% pay out ratio and end of this year, we will get to the 50% payout ratio as per policy.

Shareholders have been patient with us. They have given us money, they have invested in us. They have waited—they got zero in 2023. It's time to pay back.

The only way you can do that is by doing the three.

Paul Russo: You must deliver on the performance. You must reduce your NPL, isn't it? You must get investment out of your spend, value out of your spend. There is a connection in all of them. That is the Bible preaching according to St. Paul. It has to sink. It has to sit. We are proud about what we have done. We have done cleanup. We have started performance. Nobody will question we are accelerating, but sustainably. Not just for numbers. Not for numbers.

Have you realize the connection you must deliver on the performance? You must reduce your npl, isn't it? And you must get Investments out of your spend value out of your spend

There's a connection in all of them.

That is the Bible preaching, according to St. Paul.

It has to think.

It has to seek.

And we're proud of what we've done. We've done cleanup, we've started performance.

Nobody will question. We accelerating but sustainably.

Not just for numbers.

Paul Russo: We will not get into a point where we have to write down loans in the way we wrote down in 2022, 2023. That is a speed dial on KCB's tactics for the next six months. Then we do 2027, 2029. Tony, is it not? I hope I have spoken like an A student. Yeah, Tony? On that note, I step down so that you can listen to the numbers. Lawrence, over to you. I thank you.

Not for numbers, we will not get into a point where we have to write down loans. In the way we wrote down in 2022, 2023.

So that is a speed dial on KCBS.

tactics for the next 6 months, then we do 2027 2029 Tony's in you

I hope I've spoken clearly. I can ask a question now.

and on that note, uh,

I stepped down so that you can listen to The Numbers Lawrence over to you. I thank you.

Lawrence Kiambi: Let us appreciate our GCU again. When your boss mentions you, like, 200 times, you know there is a problem. Let me try and be up to the task. Welcome to the second part of this afternoon's results delivery. I will get into the numbers now. As usual, we start with the balance sheet. Our balance sheet grew by 17% in total asset level, to close at KES 2.3 trillion. This was primarily driven by our deposits franchise that grew by 15% to KES 1.7 trillion. Mostly out of KCB Kenya, KCB Tanzania, and maybe that is why Cosmas is here. Those two grew by 18%. Trust Merchant Bank did a fantastic job in the H1 of the year, growing deposits by 25%. We utilized this to fund our loan side, our interest earning assets, with loans growing at 13% to KES 1.2 trillion.

Let's appreciate our GCU again.

You know, when your boss mentions you like, uh, 200 times.

You know, there's a, there's a problem.

but, uh, let me, let me, let me try and

Uh, you know, be up to the task.

So, welcome to the second part of this afternoon's. Uh uh,

Resorts delivery— I will get into the numbers now.

and as usual, we start, uh, with the balance sheet,

Lawrence Kiambi: This was primarily driven by our deposits franchise that grew by 15% to KES 1.7 trillion. Mostly out of KCB Kenya, KCB Tanzania, and maybe that is why Cosmas is here. Those two grew by 18%. Trust Merchant Bank did a fantastic job in the H1 of the year, growing deposits by 25%. We utilized this to fund our loan side, our interest earning assets, with loans growing at 13% to KES 1.2 trillion.

So our balance sheet grew by 17% in total asset level to close at $2.3 trillion.

This was primarily driven by our deposits franchise, which grew by 15% to $1.7 trillion.

Mostly out of kcb Kenya. Uh, kcb Tanzania and maybe that's why Cosmos is here. Those, those 2 Group by 18% but also tmb

We did a fantastic job in the first half of the year growing deposits by 25%. This then funded—uh—we utilized this to fund our loan side, uh, our interest-earning assets.

Lawrence Kiambi: Government securities growing at about 22% to just above half a trillion. This was collectively done from a group point of view. When you look at, I think the chairman's speech, he did mention that a third of our total assets do come out of the regional subs. You can see most of them are on double-digit growth. KCB Kenya at 17%. That is total assets. Our brothers in DRC are 25%. Rwanda at 12%. You can see quite some really good growth. Uganda there at 21%. A fairly robust performance at balance sheet level. Let me just break this down a bit more. Just looking at deposits on its own now. You can see the bulk of the deposit has come out of CASA, what we call CASA, current accounts and savings accounts. 15% growth on the deposits.

Uh, with loans growing at 13% to 1.2 trillion, uh, government securities growing at about 22% to just, uh, just above half a trillion.

Lawrence Kiambi: Our brothers in DRC are 25%. Rwanda at 12%. You can see quite some really good growth. Uganda there at 21%. A fairly robust performance at balance sheet level. Let me just break this down a bit more. Just looking at deposits on its own now. You can see the bulk of the deposit has come out of CASA, what we call CASA, current accounts and savings accounts. 15% growth on the deposits.

Uh, and you know, this was collectively done from a group point of view. So when you look at and I think chairman speech, he did mention that a third of our total assets. Do come out of of, um, of of, of the regional Regional Subs, you can see most of them are on Double Digit growth, uh, kcb Kenya at 17%, that's total assets. Um, our, our brothers in DRC 25, um, Rwanda at 12. So you can see quite quite some really good growth Uganda there, at at at 21. So a fairly robust, uh, performance at at balance sheet level,

Let me just break this down a bit more, so just looking at, at deposits on its own. Now,

Lawrence Kiambi: And more importantly, I think this is a critical point, 15% of this new business came out of new customers, new to bank customers. So we have good relationships with the existing customers, but we are not just sitting, sweating them to death. We are actually going out and recruiting new customers. From a typological point of view, not too much difference in terms of the mix. 64% remain demand. Sorry, yes, demand. Term is 16. There is just always an interplay between term and core on savings. From a currency point of view, the deposits since actually we acquired Trust Merchant Bank, our FCY deposits have really grown, sitting at about a third of the balance sheet. Coming to the loan side, you can see all the subsidiaries had a fairly healthy growth in terms of loans. Overall, it was a 14% growth in loans.

Lawrence Kiambi: From a typological point of view, not too much difference in terms of the mix. 64% remain demand. Sorry, yes, demand. Term is 16. There is just always an interplay between term and core on savings. From a currency point of view, the deposits since actually we acquired Trust Merchant Bank, our FCY deposits have really grown, sitting at about a third of the balance sheet. Coming to the loan side, you can see all the subsidiaries had a fairly healthy growth in terms of loans. Overall, it was a 14% growth in loans.

Came out of new customers, new to bank customers. So it's not we have good relationships with the existing customers, but we are not just sitting uh, you know, sweating them to death. We are actually going out and and and and recruiting uh new customers from a typological point of view. Uh not too much difference. In terms of the mix, uh, you know, 64% uh, remain demand, sorry. Um yes. Demand time is 16. Uh, there's just an interplay always an interplay between term and core on savings and then from a currency point of view, uh the deposit since actually, we acquired tnb our. Our fcy, uh, deposits have really grown sitting at about a third of of, of the balance sheet.

Coming to the loan, the loan side.

Lawrence Kiambi: But when you look at the individual subs, Kenya KES 86 billion in terms of growth. Because of their balance sheet, that is only 10%. Someone would say it is only 10%, but I am not sure you can say KES 86 billion is only. That is a size of a few banks' balance sheets. Trust Merchant Bank 27%, that 29.3 is equivalent to 27% year-on-year growth. BPR Bank Rwanda Plc 31% growth. Tanzania 29%, Uganda 27%. So really good, robust growth coming out of the loan side. From a sectorial side, you can see our consumer personal households, what other banks call consumer lending, contributed the large part of the growth. There is a graph I will show you later on NPL, where you can see even from an NPL point of view, consumer is really driving the recovery. So this talks to people being able to afford more now.

Lawrence Kiambi: When you look at the individual subs, Kenya KES 86 billion in terms of growth. Because of their balance sheet, that is only 10%. Someone would say it is only 10%, but I am not sure you can say KES 86 billion is only. That is a size of a few banks' balance sheets. Trust Merchant Bank 27%, that 29.3 is equivalent to 27% year-on-year growth. BPR Bank Rwanda Plc 31% growth. Tanzania 29%, Uganda 27%.

You can see all the subsidiaries had a fairly healthy growth in terms of, uh, of loans overall. It was a 14% growth in in um, in in in loans. Uh, but when you look at the individuals, uh, Subs,

Kenya 86 billion in terms of growth, uh, because of their balance sheet that, you know, is only 10% someone would say, it's only 10%, but it is, you know, I'm not sure. You can say it is 6 billion is only, you know, that's, that's the size of of, a few Banks balance sheets, uh, tmb 27%. Um, you know, that 29.3 is equivalent to 27% year on year growth.

Lawrence Kiambi: Really good, robust growth coming out of the loan side. From a sectorial side, you can see our consumer personal households, what other banks call consumer lending, contributed the large part of the growth. There is a graph I will show you later on NPL, where you can see even from an NPL point of view, consumer is really driving the recovery. So this talks to people being able to afford more now.

BPR 31, uh, percent growth, Tanzania, 29, Uganda 27, so really good robust, uh, growth coming out of of, of, uh, of of, of, of, of, of the of, of, of the of the loan side. And then from a sectoral, um, uh side, you can see our our consumer personal house households, you know what, other other Banks called consumer lending. Um, contributed you know, the the large part of of of of the of the growth and there's a graph I'll show you later on on npl where you can see. Even the from an npl point of view uh consumer is really driving the, the the recovery. So these talks to, you know,

Lawrence Kiambi: Whilst disposable incomes are stretched, I think the incomes are also starting to sort of grow. I do not think we are back to where we were pre-2022, but you can see our balance sheet is actually telling us that there is some affordability. Agriculture, energy, and water. These are sectors that were very low in the past. Just to see how well they are doing in terms of growth is quite commendable, and I will show a bit more detail in the coming slide. Actually, this is a slide. So when we take our entire loan book and break it down in those sectors, you can see our largest sector for KCB Group as a group. What contributes the highest to our loan book is personal loan and household at 27%, followed by manufacturing, which is a good story because manufacturing is starting to recover, and real estate.

People being able to afford more now, uh, whilst disposable incomes are stretched. I think the incomes are also starting to to sort of, uh, grow. We are not, I don't think we are back to where we were, uh, you know, pre pre pre 2 2022, but you can see, you know, our balance sheet is actually telling us uh, that that, you know, there's some affordability.

Lawrence Kiambi: When we take our entire loan book and break it down in those sectors, you can see our largest sector for KCB Group as a group. What contributes the highest to our loan book is personal loan and household at 27%, followed by manufacturing, which is a good story because manufacturing is starting to recover, and real estate.

Agriculture, energy and water. These These are segments that sectors that were very, very, very low in the past. And, you know, just to see how well they are doing in terms of of of, of growth is, is, is quite commendable. And, you know, I I will, I will, I will show a bit a bit more detail in the, in the, in the coming slide. Actually, this is a slide.

Lawrence Kiambi: But look at the year-on-year growth, because I think that is what talks to now, what Paul Russo was presenting earlier in terms of our strategic focus, in terms of which segments, from an economic point of view, have a lot of value that we were underplaying in. So energy and water, it is 5% in terms of contribution, but has had a growth of 66%. Agriculture, the biggest contributor to this, most of the economies in the region, in the countries we operate in, is agriculture. For our balance sheet to only be at 6%, this actually I think has more than tripled. It used to be something like 1% in the past. It has gone to 6%, and can see the growth at 67%. So, it is just being able to get your strategy working, focusing on where you see your future growth segments.

Lawrence Kiambi: Look at the year-on-year growth, because I think that is what talks to now, what Paul Russo was presenting earlier in terms of our strategic focus, in terms of which segments, from an economic point of view, have a lot of value that we were underplaying in. So energy and water, it is 5% in terms of contribution, but has had a growth of 66%.

So when we take our entire loan book and break it down in those in those sectors, you can see our largest, uh, sector for for, for kcb, as a group. What contributes, the highest to our loan book is Barcelona and household at at 27%, followed by manufacturing, uh, which is a good story because manufacturing is starting to recover and real estate.

Um, but look at the year-on-year growth.

Because because I think that's where that's what talks to. Now, what, you know, Paul was present in early in terms of our strategic forecast in terms of where, which segments,

Lawrence Kiambi: Agriculture, the biggest contributor to this, most of the economies in the region, in the countries we operate in, is agriculture. For our balance sheet to only be at 6%, this actually I think has more than tripled. It used to be something like 1% in the past. It has gone to 6%, and can see the growth at 67%. So, it is just being able to get your strategy working, focusing on where you see your future growth segments.

Have from from a from an economic point of view, have a lot of value that we want are playing in so energy and water. We it's 5% in terms of contribution but has had a growth of 66% agriculture. You know, the the the biggest contributor to this, most of the economies in the region in in in the countries we operate in is agriculture and for, you know, our balance sheet to only be at 6%, this actually a think. As more than tripled, it used to be something like 1%.

Lawrence Kiambi: Even from a national budget point of view, you will see that the bulk of allocation does go to some of these sectors that we are looking at. Previously, I used to really get worried when I got to this slide, and I knew the day will come when I will be happy to present these slides. You can see from a graphical point of view, both the line graph and the bar graph are going in the right direction. From a stock point of view, in the last 15 months, we have been able to reduce our stock by KES 30 billion. The NPL ratio itself has also come down. 15.1% is the lowest we have been since Q3 2021. Hey, students, that is how many months? 57 months.

In the past uh it's gone to to to 6 uh and you know can see the growth at, you know, 67%. So you know it's just been able to get your strategy working um you know focusing on where you see your future your future growth uh segments and even from a budget National budget point of view, you'll see that the bulk of allocation does go to some of these sectors that we we are we are looking. We are looking at

Right.

Previously, I used to really get worried when I got to this slide.

Lawrence Kiambi: You can see from a graphical point of view, both the line graph and the bar graph are going in the right direction. From a stock point of view, in the last 15 months, we have been able to reduce our stock by KES 30 billion. The NPL ratio itself has also come down. 15.1% is the lowest we have been since Q3 2021. Hey, students, that is how many months? 57 months.

And I knew the day would come when I'd be happy to present these slides.

Both the line graph and and and the bar graph.

Are going in the right direction.

So from a stock point of view in the last 15 months, we've been able to reduce our stock by 30 billion.

30 billion Shillings.

The npl ratio itself, has also come down.

Yeah, 15.1% is the lowest we have been since Q3 2021.

Is students. That's how many months.

Yeah.

Lawrence Kiambi: The work that the teams are doing, the story we have been giving here about our strategy of rehabilitation, recovery, full and final settlements is bearing fruits. It never felt like that a few quarters ago when I was standing here and seeing the thing has gone up again. But now, you can see the numbers are actually telling us a story. When you come to the coverage side, again, it is a good story. We have talked about increasing our cash coverage, getting it up to 70%, and that is trending. We say it is not going to happen in one year. It will take some time, but we are headed in the right direction. IFRS coverage, moving up by almost 900 basis points to 55%, and regulatory one moving up by over 1,000 basis points to about 62%. So a fairly good story. It does not stop there.

57 months.

So the work that the the teams are doing um, the story. We've been given here about our strategy of Rehabilitation recovery, full and final settlements is bearing fruits.

Lawrence Kiambi: When you come to the coverage side, again, it is a good story. We have talked about increasing our cash coverage, getting it up to 70%, and that is trending. We say it is not going to happen in one year. It will take some time, but we are headed in the right direction. IFRS coverage, moving up by almost 900 basis points to 55%, and regulatory one moving up by over 1,000 basis points to about 62%. So a fairly good story. It does not stop there.

It never felt like that a few quarters ago when I was standing here and seeing the thing has gone up again. Uh, but now, uh, you can see the numbers are actually telling us telling us a story when you come to the coverage side. Again it's it's it's you know, a good good story. We've talked about increasing our cash coverage. Uh

Lawrence Kiambi: Let me continue with a good story. I will be here for a while. Looking at just splitting that in terms of sectors, again, I did show the contributions from a loan point of view. Now, this shows the contribution of those sectors from a non-performing loan point of view. You see, much as I praised agriculture a lot, it is now become the number one, but we know why. But I think the key message here is almost all, say for two of the sectors, are actually in decline in terms of NPL recovery. The two is financial services. I think there is something in Trust Merchant Bank on that. And the tourism, it is basically hotels. Two hotels, one in Kenya and one in Rwanda that have contributed to those two red arrows you are seeing up there.

Getting it up to to 70 and that is trending. And we say this, all going to happen in 1 year. It will take some time, but we are headed in the right direction. If a race coverage, moving up by almost 900 basis points to 55%, uh, and reg regulatory 1 moving up by over a thousand basis points to about 62. 62%, so a fairly fairly fairly good story. It doesn't stop there.

Let me continue with a good story. I'll be here for a while.

Lawrence Kiambi: I think the key message here is almost all, say for two of the sectors, are actually in decline in terms of NPL recovery. The two is financial services. I think there is something in Trust Merchant Bank on that. And the tourism, it is basically hotels. Two hotels, one in Kenya and one in Rwanda that have contributed to those two red arrows you are seeing up there.

Lawrence Kiambi: From a sector, what I had raised earlier on, when you look at the last 15 months from Q1 2025 to H1 2026, the largest contributor of that stock reduction is real estate, 51% to 35%, followed by personal, 39% to 28%. Between the two of them, that is about 37%. So sorry, it is about KES 27 billion reduction. Two or three of them have gone the other way. But that gives you a message in terms of how the operating environment is coming out, where our focus going forward should be. Then lastly on matters NPL, is just to show how we have trended now from the ratio itself. From H1 2025, we were showing where we were in Q1 this year and where we are at H1. You will see the good story in Kenya. It is a very good line going up, just dropping.

So looking at just splitting that in terms of of um of sectors, again I did show, you know, the contributions um from a loan point of view. Now this shows the contribution of the contribution of those sectors from a non-performing loan point of view. Uh, if you much as I praise the agriculture a lot, it's, it's now become the number 1, but but we know why. But I think the key message here is most almost all say for 2 of the sectors. I actually in decline in terms of of of, of, of, of npl recovery. Uh, the 2 is financial services. I think there's something in tmb on on that and the and the tourism. Um, it's basically hotels. Uh, 2 hotels 1 in in, in in Kenya and 1 in uh in Rwanda that have contributed uh, to to to to to to to to to those 2 red arrows. You've seen up there.

From a sector. Uh you know what addressed earlier on when you look at the last 15 months from q1 2025 to to h126

the largest contributor of that uh stock reduction is real estate 51 to 35, followed by personal

Lawrence Kiambi: Two or three of them have gone the other way, but that gives you a message in terms of how the operating environment is coming out, where our focus going forward should be. Then lastly on matters NPL, is just to show how we have trended now from the ratio itself. From H1 2025, we were showing where we were in Q1 this year and where we are at H1. You will see the good story in Kenya. It is a very good line going up, just dropping.

39 to 28 that's between the 2 of them. That's about 37. So sorry it's about it is about 27 billion reduction uh 2 or 3 of them have gone the other way but you know that you know, gives you a message in terms of, you know, how the operating environment is is is um is is is is is coming out, you know, where our Focus uh going forward should be.

And then, lastly on on on, on, on, on, on matters, npl.

Lawrence Kiambi: And that's, remember, KCB Kenya did take in some hiving from National Bank of Kenya, which increased their NPL. You can see that trending is quite good. For DRC, they had a hiccup in Q1. If you recall, back at the beginning of last year, the Eastern DRC conflict did start. NPL is always a laggard in terms of indicator. We had to downgrade most of the facilities from that side of DRC, and that's why you see that massive spike. We have started with the correction now in terms of rehabilitation, getting full and final settlements of them. That's why H1, you can see a big drop in the NPL. South Sudan is fine. Skip that. Uganda, the issue is the M-PESA in Q1. It was an aftermath of the elections that they had. That contributed to a higher NPL in Q1.

Lawrence Kiambi: That's, remember, KCB Kenya did take in some hiving from National Bank of Kenya, which increased their NPL. You can see that trending is quite good. For DRC, they had a hiccup in Q1. If you recall, back at the beginning of last year, the Eastern DRC conflict did start. NPL is always a laggard in terms of indicator.

It's just to show how we've trended now from the ratio itself, uh, from H1 2025, we, we were showing what where we were in quarter 1 this year, and where we are at H1, you'll see the good story in Kenya. It's a very good line going all, you know, just dropping. And that's remember, um, kcb Kenya did take in some Hive in from, uh, nbk which increase the inpl. So you can see that trending is is, is, is quite it's quite good. Um, for DRC. They had a hiccup in in, in q1, uh, you, if you recall back in the beginning of

Last year, you know, the Eastern DRC conflict did start.

Lawrence Kiambi: We had to downgrade most of the facilities from that side of DRC, and that's why you see that massive spike. We have started with the correction now in terms of rehabilitation, getting full and final settlements of them. That's why H1, you can see a big drop in the NPL. South Sudan is fine. Skip that. Uganda, the issue is the M-PESA in Q1. It was an aftermath of the elections that they had. That contributed to a higher NPL in Q1.

Lawrence Kiambi: And for BPR, it's what I've talked about earlier in terms of the hotel that was downgraded, that is contributing to that 3.1 in H1. Let's turn our attention now to the income statement. Our interest income grew by 4%. This was largely driven by the balance sheet, the volumes, 16% growth in interest-bearing assets. But in Kenya specifically, it was diluted by lower yields. You recall that since, because we're comparing quarter on quarter, since Q3 last year, the MPC have been cutting rates. They've only just held, I think, the last two this year. So we followed suit in Kenya in terms of reducing the interest rates, and that has had an impact of impacting the growth. Second item there, which I'll only mention once, I won't repeat it again, is in 2025 numbers, we did have National Bank of Kenya for 5 months.

So that, that, that contributed to, to a higher npl in in, in q1 and for, uh, BPR. It's a, you know what I've talked about earlier in terms of, of of, of, of, of the hotel that was downgraded. That is contributing to that 3.1 in in H1.

So, let's now turn our attention to the income statement.

Our interest income grew by 4%.

This was largely driven by the balance sheet, the volumes, uh, 16% growth in uh, interest bearing assets.

Lawrence Kiambi: You recall that since, because we're comparing quarter on quarter, since Q3 last year, the MPC have been cutting rates. They've only just held, I think, the last two this year. So we followed suit in Kenya in terms of reducing the interest rates, and that has had an impact of impacting the growth. Second item there, which I'll only mention once, I won't repeat it again, is in 2025 numbers, we did have National Bank of Kenya for 5 months.

But in Kenya specifically, it was diluted by lower yields.

So you you you recall that since because we are comparing quarter on quarter since uh quarter 3 last year the the MPC have been cutting rates. They were only just held. I think the last 2 this year so we followed suit in Kenya in terms of reducing um reducing the the the interest rates and that has had an impact of of of of impacting uh, you know, the the the growth second item there, which I'll only mention once I would repeat it again is in 2025 numbers.

Lawrence Kiambi: So in the comparator base, you have a number, an entity that is not there in the 2026 numbers. So that also has a bit of distortion in terms of the growth rates. At interest expense level, I think the teams have done a fantastic job, especially the Kenya team. 5% decline in terms of interest expense. It's also reflected in the cost of funds. So much as deposits have grown in absolute numbers, when you take the ratio, there is a market improvement in terms of cost of funds. And this is the strategic repricing that we took much earlier last year that carried through into the end of the year and into this year. NFI, another very good story. Total growth in non-funded income, 15% year on year, driven by a 30% growth in lending fees. That's split into two major reasons.

Uh, we did have National Bank for five months,

So, in the, in the, in the comparator base, you have a number, uh, an entity that is not there in, in the, in the 2020, uh, 2026, um number. So of course that also has a bit of distortion in terms of the growth. Uh, the growth rate

Lawrence Kiambi: Much as deposits have grown in absolute numbers, when you take the ratio, there is a market improvement in terms of cost of funds. And this is the strategic repricing that we took much earlier last year that carried through into the end of the year and into this year. NFI, another very good story. Total growth in non-funded income, 15% year on year, driven by a 30% growth in lending fees. That's split into two major reasons.

At um interest expense level. I think the teams have done a fantastic job, especially the Kenya team uh 5% decline um in terms of of interest expense, it's also reflected in the cost of funds so much as deposits have grown in in absolute numbers. Uh, you know, when you take the ratio, uh, you you know, there's there there is a market Improvement in terms of, of, of of, uh, cost of funds. And this is, you know, the Strategic reprising that we took much earlier, uh, last year that carried through into into, uh, into the end of the year and into this year.

NFI.

Another very good story. So

Lawrence Kiambi: One is the work Angela is doing and Mark in digital lending. And secondly is a change in the pricing methodology in Kenya that has reintroduced facility fees. So that has come in to support that growth. FX income, 22% growth. Volumes have come back in Kenya, but equally, we've also seen a good performance Trust Merchant Bank and some of the other subsidiaries, I think KCB Bank Tanzania and BPR as well. Service fees 13% up year on year. Again, just the work, partial commercialization of Dennis Volemi's investment is coming through. We expect to see a lot more of that coming through in the coming months. So put all that together, our total income closed at KES 108 billion, which is a year on year growth of 10%. At cost level, we managed our cost quite well, 6% year on year growth.

Growth in non-funded income, 15% year on year. Uh driven by 30% growth. In lending fees that split into 2 major uh reasons 1 is the work Angela is doing and Mark in digital lending and secondly is a change in the pricing methodology in Kenya that has reintroduced facil facility fees. So that has come in to support that growth FX income.

Lawrence Kiambi: Service fees 13% up year on year. Again, just the work, partial commercialization of Dennis Volemi's investment is coming through. We expect to see a lot more of that coming through in the coming months. So put all that together, our total income closed at KES 108 billion, which is a year on year growth of 10%. At cost level, we managed our cost quite well, 6% year on year growth.

22% growth volumes have come back in Kenya, but equally we've also seen a good perform performance tmb and some of the other subsidiaries I think, um, um, Tanzanian VPR as well.

Service fee, 13% up year on year. Again, just the work.

Partial commercialization of vmi's investment is coming through. Uh, we expect to see a lot, a lot more of that coming through in the, in the coming months. So put all that together, our total income closed at 108 billion. Uh, which is uh, year year on year growth of of, of 10%,

Lawrence Kiambi: That is actually 6% is below the average inflation of the markets that we operate in. We have actually grown below inflation. Cost to income ratio continues to trend in the right direction, 44.4% down from 46%. We have grown our income faster than we have grown our costs, generating a positive jaw of 3.8. Remember, our total income has grown at 10% and our costs are sitting at about 6%. That generates that positive jaw of 4%. Coming to the slide that people wait for. In fact, maybe I should be starting with this. At profit level, a 21% year on year growth at PBT to close at 49.3 billion KES. This from a split in it in terms of contribution by all the subs, about a third of it, 30%, is being contributed by the subsidiaries outside of KCB Kenya. That is outside of KCB Kenya.

Lawrence Kiambi: Remember, our total income has grown at 10% and our costs are sitting at about 6%. That generates that positive jaw of 4%. Coming to the slide that people wait for. In fact, maybe I should be starting with this. At profit level, a 21% year on year growth at PBT to close at 49.3 billion KES. This from a split in it in terms of contribution by all the subs, about a third of it, 30%, is being contributed by the subsidiaries outside of KCB Kenya. That is outside of KCB Kenya.

At Cost level. Um, we've managed our cost quite well 6%. Um, year on year growth, that's actually 6% is below. The average inflation of of the markets that we operate in. So we've actually grown uh, below below um uh inflation cost to income ratio continues to to to Trend in the right direction. 44.4 uh, percent down from from 46 and we've grown our income faster than we've grown, our costs uh, generating a positive job of 3.8. So remember, our total income has grown at 10% and our costs are sitting at about uh, 6% so that generates that, that positive job of of of of 4%

Right coming to the slide that uh people, wait for the fact that maybe I should be starting with this.

At at profit level, uh, at 21% year on year, growth, uh, at PBT to close at, um, 49.3 billion.

Lawrence Kiambi: It does include the non-banking subs. However, KCB Kenya itself did a phenomenal job. You see, this is a problem with getting this ratio is when Anastasia wakes up and starts firing from all cylinders, now she dilutes what these other guys are doing. It is not that they are doing a bad job, but when you grow at 25%, you increase your cake in terms of contribution. There are some gems in there as well that have done very well. I will single out a few. KCB Investment Bank, 227% year on year growth. Let us give them a hand. I have told Maurice, there is that phrase about being a victim of your own success. I will expect then when I am standing here same time next year, inshallah, I will be saying 227 again. South Sudan, despite hyperinflation, continued to actually do quite well, 34% growth.

Include the non-banking subs; however, KCB Kenya itself.

Lawrence Kiambi: There are some gems in there as well that have done very well. I will single out a few. KCB Investment Bank, 227% year on year growth. Let us give them a hand. I have told Maurice, there is that phrase about being a victim of your own success. I will expect then when I am standing here same time next year, inshallah, I will be saying 227 again. South Sudan, despite hyperinflation, continued to actually do quite well, 34% growth.

Did a phenomenal job. So you see, this is a problem with getting this ratio is when Anastasia wakes up and starts firing from all cylinders. Now, she dilutes what these other guys are doing is not that they're doing a bad job. But when you grow at 25%, you know, you take, you increase your cake in terms of contribution, but there are some, um, gems in there as well. That have done very well, I'll single out a few kcb Investment Bank, 227 percent, or near growth.

Uh,

Let's let's keep them a hand.

I've been told more is, you know, that phrase about being a victim of your own success. So I'll expect that when I'm standing here, same time, next year, inshallah,

I'll be there in 2:27 again. Yeah.

Lawrence Kiambi: Cosmas, KCB Tanzania 22% year on year growth. Well done, Cosmas. Those colleagues who are here and I have not mentioned, you can see where the threshold is. I only deal with 20s and above. If you want me to mention you next time, please deliver a good performance. To this slide that I was set up and I was told to pay particular attention to it. The board met this morning, and have approved an interim dividend of 3 shillings per share. That 3 shillings is actually 50% above what we paid in terms of interim dividend last year. You remember last year we had two components. We had what we paid out of returns of NBK. Then there is what was from the actual business performance, which was 2 shillings. Now we have upped that interim from 2 shillings to 3 shillings.

South Sudan despite, um, hyperinflation continue to actually do quite well, 20 34% growth and uh, Cosmos kcb Tanzania 22% here on near growth, wealth and Cosmos.

So those colleagues who are here and have not been mentioned, uh, you can see where the threshold is. I only deal with twenties and above. So if you want me to mention you next time, please deliver a good, a good performance.

Lawrence Kiambi: The board met this morning, and have approved an interim dividend of 3 shillings per share. That 3 shillings is actually 50% above what we paid in terms of interim dividend last year. You remember last year we had two components. We had what we paid out of returns of NBK. Then there is what was from the actual business performance, which was 2 shillings. Now we have upped that interim from 2 shillings to 3 shillings.

And um, to this slide that uh, you know, I was set up and uh and I was told to pay particular attention to it.

So, the board met this morning, um, and, uh, have approved an interim dividend of three shillings per share.

That 3 shillings is actually 50% above what we paid in terms of interim dividend last year. Yeah, you remember last year, we had two components. We had what we paid out of returns of NBK.

Lawrence Kiambi: That is interim. That is number one. Total payout will be about 9.6 billion shillings. If you take that together with the appreciation of the share as at 30 June, total shareholder return is at 24%. I do not think even infrastructure bonds will give you that. You are investing in the right place. If I fast-forward that to this morning, or was it yesterday? The share price was what? 85? Yes. So June it was 78. You even made more money. After this announcing these results, it should go up by the 3 shillings at least. It will become dividends. This is about a 27% payout. This is out of the profits of H1. It talks to the promise and commitment that Paul has given here that we will get to at least 35% payout this year.

Then there is the, the, what was from the actual business performance, which was 2 shillings. Now, we've upped that interim from 2 shillings to 3 shillings. Uh, that, that—and that is interim. Yeah, so that's number one. It's about, it's a total payout to be about 9.6 billion shillings.

um, if you take that together with the appreciation of the share as that 30th June, uh total shareholder return is at 24%

Lawrence Kiambi: June it was 78. You even made more money. After this announcing these results, it should go up by the 3 shillings at least. It will become dividends. This is about a 27% payout. This is out of the profits of H1. It talks to the promise and commitment that Paul has given here that we will get to at least 35% payout this year.

I don't think even infrastructure bonds will give you that so you are investing in the right place. Yeah. If I fast forward that to this morning was it yesterday the share price was what 85.

Lawrence Kiambi: This is a starting point. We have done 27%. Remember also, in the middle of the year before we complete audits, we are only allowed to utilize 50% of our organic capital for purposes of computing capital adequacy. We have got to use that 50% to fund the growth of the H2 so that we can unlock more value and pay you what is rightfully yours. From a return on equity point of view, I think we are still within our 20s. Most of the subsidiaries are doing fairly well. A bit of a drop in Burundi because of hyperinflation. We do expect that we might be coming out of hyperinflation this year for Burundi. So how we do the accounting for Burundi is likely to change. The rest, when I look at the outlook, I am fairly confident that we will deliver the promise on ROE.

Yes, so June, it was 78. So there's even even made more money and after this announcing this results it will go. It should go up by the 3 Shillings. At least it will become dividends. Yeah, so this is about a 27% payout, this is out of the profits of first half. Um, and it talks to, you know, the the the promise that and commitment that Paul has given here that we will get to at least 35% pay out this year. So this is the starting point, we've done 27. Remember. Also at at, in the middle of the year. Before we complete audits, we are only allowed to utilize 50%. Over our organic capital for purposes of computing, Capital adequacy. So we've got to use that 50% to fund the growth of the second half so that we can unlock more value and pay you. Uh, what is rightfully yours?

Yeah.

Lawrence Kiambi: From a return on equity point of view, I think we are still within our 20s. Most of the subsidiaries are doing fairly well. A bit of a drop in Burundi because of hyperinflation. We do expect that we might be coming out of hyperinflation this year for Burundi. So how we do the accounting for Burundi is likely to change. The rest, when I look at the outlook, I am fairly confident that we will deliver the promise on ROE.

from a

Lawrence Kiambi: Capital, very good buffers on capital. I would say we have done a very good job of getting the optimal capital structures. Before we were heavily dependent on organic capital, which is what the retained earnings that we generate out of profits. We have brought in debt to mix for KCB Kenya, for KCB Uganda, and a bit of Rwanda, just to get the optimal structures and also give us the base and buffer to allow us to be able to distribute a bigger chunk by way of dividends. So we will continue reviewing our balance sheets and where we need to optimize the structures, we will do that. But the message here is from a capitalization point of view, your bank, your organization is fairly well capitalized. Then coming to the scorecard. This is probably one of the few times I have asked to study and there is no red.

return on Capital on Equity point of view. I think, you know, we are, we are still within our 20s. Uh, most of the of the subsidiaries are doing fairly well, a bit of a drop in in Burundi because of hyperinflation. Uh, we do expect that we might be coming out out of hyperinflation this year for Burundi. Uh, so how we do the accounting for for Burundi, is likely to change the rest? Uh, you know, when I look at the Outlook, um, fairly confident. Uh, that will deliver the promise on on on on Roe.

Lawrence Kiambi: We will continue reviewing our balance sheets and where we need to optimize the structures, we will do that. But the message here is from a capitalization point of view, your bank, your organization is fairly well capitalized. Then coming to the scorecard. This is probably one of the few times I have asked to study and there is no red.

To be able to distribute a bigger chunk uh, in by way of dividends. So we'll continue reviewing our balance sheets and where we need to optimize the the structures, we will do that. But the message here is, you know, from from a capitalization point of view. Your, your your bank. Your organization is is fairly well, um, capitalized. And then come into the scorecard.

This is probably one of the few times I've asked about Q2 and there's no red.

Lawrence Kiambi: Actually, I have just thought about it. We have ambers, but there is no red. So it is a good story. Again, goes back to Paul's first point about sustainable performance. Because this is the scorecard that measures whether we are actually having a sustainable performance. It is not just about PBT, it is the shape of how that PBT is produced and delivered. NFI, we are below what we had given as our outlook at 31.5. We have projects in the pipeline that we should be generating. Some are late, some were scheduled to come out. Remember, this outlook is a full year outlook. Were scheduled to come on stream in the H2 of the year. Once those are actually commissioned, we should see a good improvement in NFI. Net interest margin and asset yield, those are driven by the same thing. They are actually asset yields.

Actually, I've just thought about it. We have ambers, but there's no red, so it's a good story. Again, it goes back to Paul's first point about sustainable performance.

Lawrence Kiambi: We have projects in the pipeline that we should be generating. Some are late, some were scheduled to come out. Remember, this outlook is a full year outlook. Were scheduled to come on stream in the H2 of the year. Once those are actually commissioned, we should see a good improvement in NFI. Net interest margin and asset yield, those are driven by the same thing. They are actually asset yields.

Yeah, cuz this is the score card that measures whether we are actually having a sustainable performance. It's not just about PBT, is the shape of how that PBT is is, is produced and delivered NFI. Um, we are below what we had given as our Outlook at 31.5. Um, we have projects in the pipeline that should be generating. Um, there are some are late, some were scheduled to come out. Remember this Outlook is a full full year outlook, was, was scheduled to, to come on stream in the second half of the year. Uh, and you know, once that once those are actually commissioned, we should, uh, see a match a good Improvement in in, in, in NFI

Lawrence Kiambi: As I mentioned earlier, just the reduction in interest rates that we have had to do in Kenya in the period under review has pushed our NIMs marginally below our range and asset yield as well. The rest are green, so I will not talk to them. This presentation will be loaded this evening, David, on our website. So the full end-to-end will be available for your reviews. So allow me to stop there. I took a shorter time than Paul, so that is my questions. Thank you.

Um, net interest, margin and asset yield. Those are driven by the same thing. They're actually asset yields as I talked, I mentioned earlier. Uh, you know, just the reduction in interest rates that we've had to do in, in, in Kenya in the period and the review, uh, has has has has pushed our Nims marginally below our, you know, our range and asset asset yield as well. The rest are green. So I will not, I will not talk to them. This presentation will be loaded.

This evening, David on our website. So the full end to end will be available for for, for your reviews. So, allow me to stop there. I took a short time that Paul so that my questions

Peter Mora: Thank you. Thank you so much. Thank you, Lawrence. Thank you, everybody. Thank you, Chairman. Thank you, Group CEO, for the insights into the performance of the business. We will now move to the Q&A, and allow me to invite Lawrence back on stage. Dr. Kinyua, please join us on the panel, and Group CEO, please come to the podium so that we can pick the questions. We will start with questions from the floor.

Operator: Thank you. Thank you so much. Thank you, Lawrence. Thank you, everybody. Thank you, Chairman. Thank you, Group CEO, for the insights into the performance of the business. We will now move to the Q&A, and allow me to invite Lawrence back on stage. Dr. Kinyua, please join us on the panel, and Group CEO, please come to the podium so that we can pick the questions. We will start with questions from the floor.

Thank you.

Thank you. Thank you so much.

Thank you, Lawrence. Thank you, everybody. Thank you, Chairman. Thank you, Group CEO.

For the insights into the performance of the business, we will now move to the Q&A. Allow me to invite Florence back on stage—uh, Dr. Kenya.

Please join us on the panel, and Group CEO, please come to the podium so that we can pick.

The question. So, we'll start with questions from the floor.

[Company Representative] (KCB Group): When you start small, a choice becomes a habit. A habit becomes a bank. To teach them to save, they learn to spend with sense. Because tomorrow won't wait. Start now.

when you start,

And I haven't become.

Because tomorrow won't wait. Start now.

Peter Mora: Very good. Thank you very much. You want to play it again? Very good. We will go to the questions on the floor. Please remember to introduce yourself, the organization where you work at, and then we will take the questions. We will move to the online questions later. Please go ahead.

Operator: Very good. Thank you very much. You want to play it again? Very good. We will go to the questions on the floor. Please remember to introduce yourself, the organization where you work at, and then we will take the questions. We will move to the online questions later. Please go ahead.

Very good. Thank you very much.

Oh, you want to play it again?

Very good. So, we will go to the questions from the floor.

Please remember to introduce yourself, the organization you work for, uh, you work at, and then we'll take the questions. We'll move to the online.

Questions later, please go ahead.

[Analyst] (Abojani): Good evening. Thank you. Congratulations to KCB, and thank you for the army dividend. I have one question. Regional subsidiaries have been a huge contributor to Group's PBT, and I have noticed a trend downward. I was just wondering, are there any plans to expand beyond the seven countries that you already exist in? Thank you. Purity from Abojani.

Purity Wanjiru: Good evening. Thank you. Congratulations to KCB, and thank you for the army dividend. I have one question. Regional subsidiaries have been a huge contributor to Group's PBT, and I have noticed a trend downward. I was just wondering, are there any plans to expand beyond the seven countries that you already exist in? Thank you. Purity from Abojani.

Good evening.

Thank you. Um, congratulations to KCB, and thank you for the army dividend. And I have one question. Regional subsidiaries have been a huge contributor to the group’s DBT, and I’ve noticed a trend downwards. I was just wondering, are there any plans to expand beyond the seven countries that you already exist in? Thank you.

Peter Mora: Okay. Thank you, Purity. Anybody else? Do you have any other hands on this end?

Operator: Okay. Thank you, Purity. Anybody else? Do you have any other hands on this end?

Okay, thank you purity.

Anybody else?

Do you have any other hands?

Maina: Yes, there is another hand. First of all, congratulations on the numbers. Where I come from, we are also very happy because shareholders will be smiling. Thank you so much for that work. I just wanted to know what Lawrence did, because that was commendable in terms of NPL. In fact, that question I had planned to ask him later will not be asked today. I do not know what work they had to do, whether there was any repricing or works that they have done. Thank you. Maybe you could also comment on the part of the agricultural sector. I noticed the spike in terms of lending towards that. Is there something you are betting on? Because previously there was a bit of a caution on that. Thank you.

[Analyst] (KCB Group): Yes, there is another hand. First of all, congratulations on the numbers. Where I come from, we are also very happy because shareholders will be smiling. Thank you so much for that work. I just wanted to know what Lawrence did, because that was commendable in terms of NPL.

[Analyst] (KCB Group): In fact, that question I had planned to ask him later will not be asked today. I do not know what work they had to do, whether there was any repricing or works that they have done. Thank you. Maybe you could also comment on the part of the agricultural sector. I noticed the spike in terms of lending towards that. Is there something you are betting on because previously there was a bit of a caution on that? Thank you.

Peter Mora: Thank you, Maina. Santi, appreciated.

Operator: Thank you, Maina. Santi, appreciated.

Previously, there was a bit of caution on that. Thank you.

Sally Chepkore: Thank you, chairman. My name is Sally Chepkore. Allow me, please, to commend you for the incredible work that you are doing, and thank you very much for putting this company a touch of quality and a taste of excellence. I have one question. My first question is in hyperinflationary safeguards. How is the group shielding its earnings from currency devaluation and hyperinflation in volatile regional markets like South Sudan and Ethiopia? Thank you.

[Analyst 3]: Thank you, chairman. My name is Sally Chepkore. Allow me, please, to commend you for the incredible work that you are doing, and thank you very much for putting this company a touch of quality and a taste of excellence. I have one question. My first question is in hyperinflationary safeguards. How is the group shielding its earnings from currency devaluation and hyperinflation in volatile regional markets like South Sudan and Ethiopia? Thank you.

Thank you, Mayor. Sante, appreciate it.

Thank you. Chairman my name is

Incredible work that you are doing, and thank you very much for putting this company on a path of quality and a test of excellence.

I have 1 question.

My first question is, in hyperinflationary safeguards, how is the group shielding its earnings from currency revaluation and hyperinflation in volatile regional markets, like South Sudan and Ethiopia?

Lawrence Kiambi: Thank you, Sally. Can take a few more. Please go ahead. Can pass the mic.

Operator: Thank you, Sally. Can take a few more. Please go ahead. Can pass the mic.

Thank you.

Thank you so much.

I can take a few more. Yeah, please go ahead.

And pass the mic.

George Ngige: George Ngige from Business Daily. I just wanted a clarification on the dividend policy. There were two figures that were mentioned. There was 35% and 50%. Which is which?

George Ngigi: George Ngigi from Business Daily. I just wanted a clarification on the dividend policy. There were two figures that were mentioned. There was 35% and 50%. Which is which?

Lawrence Kiambi: Thank you, George. I think we can take that first round of questions. Paul, chairman, Lawrence.

Operator: Thank you, George. I think we can take that first round of questions. Paul, chairman, Lawrence.

Uh George and give you from Business Daily, I just wanted a clarification on the dividend policy. There are 2 figures that were mentioned there was 35% and 50%, so which is which

Thank you, judge.

I think we can take that first round of questions for Chairman Lawrence.

Paul Russo: Lawrence, it looks like it is just coming into play the way I wanted. I think if you can take the NPLs, Lawrence, the NPL question. I think you can also take the agricultural sector. We will do a harambee on that. Then you can take hyperinflationary. Happy to deal with the dividend policy, but I can also pass it to yourself. There you are.

Yeah. Lawrence

Looks like it is just coming into play the way I wanted.

So, I think if you can take the— the...

The NPS for it—the NPS question.

I think you can also take the gradual sector. We'll do harambee on that.

And then, you can take a hyperinflationary event.

Happy to deal with the dividend policy, but I can also pass it to yourself.

Uh,

Lawrence Kiambi: You see, I knew I was being set up. Anyway, so, I will answer the questions. I will ask Anastasia to help me with agriculture because that has come out of Kenya. She will probably have more depth. But, on the question about regional subs, it is really not a down one trend. Remember, it is what I said. If Kenya does a good job and fire on all cylinders, grow at 25%, then it will take a bigger chunk. The size of Kenya is sizable, is big. So at 25% growth, it is quite big. I will say with maybe one or two subs of international. Well, actually, subsidiary, not international, have had a decline in both balance sheet and profitability. One of them is our insurance franchise. That is because of a policy change from the regulator, Insurance Regulatory Authority, that has necessitated a change in how we do the commissions.

And yeah, so, uh, there you are.

See, I knew I was being set up anyway.

Lawrence Kiambi: The size of Kenya is sizable, is big. So at 25% growth, it is quite big. I will say with maybe one or two subs of international. Well, actually, subsidiary, not international, have had a decline in both balance sheet and profitability. One of them is our insurance franchise. That is because of a policy change from the regulator, Insurance Regulatory Authority, that has necessitated a change in how we do the commissions.

So um yeah I will do I will do I will answer the questions. I'll ask Anastasia to help me with the agriculture because that's come out of of of Kenya. She'll probably have more depth, but, uh, on the question about, uh, Regional Subs, it's really not a down, 1 Train. Remember, it's, it's what I said. If um, if Kenya does a good job and fire on all cylinders grow at 25%, then it will take a bigger chunk.

It's it's a big it's it's a it the size of Kenya is is is is is sizable. It's big so at 25% growth, uh, you know, it's it's it's it's it's quite big. Um, the the the

Lawrence Kiambi: So you will see both the balance sheet of that and the profitability has come down. But even with that, when I combine all the other subsidiaries, the growth is 10% at PBT and 15% at balance sheet. So it is not that they are going down. You had a second question about whether we are looking to grow further. I think we have always talked about our view of Ethiopia. That is still in play. It is work in progress. Once we get to the level where we have got a firm position, then we will definitely be coming back out to communicate. Maina, you had a question on NPL, and what magic was done. I wish Bernard was here. Is he here? Because he is the one who should take the credit. But it is what I said, the strategy that we have had and we have talked about, we have kept to it.

Lawrence Kiambi: You will see both the balance sheet of that and the profitability has come down. But even with that, when I combine all the other subsidiaries, the growth is 10% at PBT and 15% at balance sheet. So it is not that they are going down. You had a second question about whether we are looking to grow further.

Lawrence Kiambi: I think we have always talked about our view of Ethiopia. That is still in play. It is work in progress. Once we get to the level where we have got a firm position, then we will definitely be coming back out to communicate. Maina, you had a question on NPL, and what magic was done. I wish Bernard was here. Is he here? Because he is the one who should take the credit. But it is what I said, the strategy that we have had and we have talked about, we have kept to it.

Um, I'll say we've maybe uh 1 or 2 Subs have um international. Well actually. Subsidiaries not just not not International. I've I've had um, a decline in in both balance sheet and profitability 1 of them, is our insurance franchise. Um, and that's because of a policy change from from from the regulator Insurance regulation Authority, that has necessary necessitated the change in, in how we do the commissions. Uh, so you you will see both the balance sheet of of, of that and, and the profitability as as come down, but even with that, when I combine all the other subsidiaries, um, you know, the growth is is is is is 10% at BBT and 15% at at, at balance sheet. So it's not that they're going down. Uh, you had a second question about whether we are looking um, to to grow further. I think we have always talked about, um, you know, our view of Ethiopia uh, that is still in play.

It's working progress, once we get you know, to to to the to the level where we've got a firm position, then we will definitely be coming back uh out to to to communicate.

Minor. You had a question on uh, npl.

Lawrence Kiambi: Rehabilitation, recoveries, full and final settlements, and write-offs is coming to play now. You remember, I think 2 years ago, Paul would say we would start a recovery process. A guy goes to court in Nairobi. We stop that one. Another one comes out in Mandera, the same thing. So, there is only so much you can do. There are only so many times you can go to court to stop. But also, we have learned the game. So that strategy is definitely bearing fruits. Sally, on hyperinflation. I have skipped agriculture because I have passed it on.

Sally Chepkore: I am still here.

[Analyst 3]: I am still here.

Lawrence Kiambi: Okay, that is fine. Sally, on hyperinflation. In a hyperinflationary economy, what tends to happen is you have to keep indexing. Your shilling in the morning could buy you one loaf of bread. Your shilling in the afternoon will buy you half. You have to keep indexing. How you structure your balance sheet is to try as much as possible to store your value in non-monetary assets. In banking, you cannot do so much of that. If it was an FMCG, for instance, you will just go and start buying properties all over the place, and you protect your value. In banking, it is not necessarily that easy. We apply that strategy to try and reduce the loss on monetary assets. George, dividend policy. Dividend policy is very clear, we pay up to 50% of distributable profits. We are building up.

To, to, to stop. But also, we've learned, we've learned, we've learned the game. So that strategy is definitely, uh, bearing fruits, uh, silly on hyperinflation, I've skipped agriculture, because I've passed it on,

Okay, that's fine. Um, Sally on on on hyperinflation. Um, so in in an hyperinflationary, um, economy, what tends to happen is you have to keep, uh, indexing your. So, your, your, your, your, your shielding in the morning, uh, could buy you 1 loaf of bread, your Shilling in the afternoon, will buy you half.

Lawrence Kiambi: If it was an FMCG, for instance, you will just go and start buying properties all over the place, and you protect your value. In banking, it is not necessarily that easy. We apply that strategy to try and reduce the loss on monetary assets. George, dividend policy. Dividend policy is very clear, we pay up to 50% of distributable profits. We are building up.

Lawrence Kiambi: The reason why you had 35% is because we started off at. This year, I think we did overall, sorry, 2025, we did about 31%, if I am not wrong, 32%. That included a special dividend of the distribution of three shillings from the sale of National Bank of Kenya. We are saying we want to get to about minimum 35% in 2026 out of pure profits from underlying business, not one-offs. I hope that has clarified your question. Paul?

So so that that is what you have to keep indexing. So how you structure your balance sheet is to try as much as possible to store your value in non monetary um um assets. So so, but in banking you can't do so much of that, you know, if it was an fmcg, for instance, you'll just go and start buying properties all over the place, and you protect your value. But in banking, it's not necessarily that easy, but, you know, we apply that strategy to try and reduce the loss on, on, on monetary on monetary assets and then George dividend policy. Um, dividend policy is uh, very clear. Is we pay up to 50% of distributable? Um, profits we are building up the reason why you had certified is because we started off at a 50. I think we did overall, sorry.

In 2025, we did about 31, if I'm not wrong—32—but that included a special dividend from the distribution of, uh, 3 shillings from the sale of NBK. Now, we are saying we want to get to about a minimum of 35% in 2026 out of...

Uh, pure profits from the underlying business, not one-off. So I hope that has clarified your question, Paul.

Paul Russo: Anastasia, you are ambushed. Yeah.

Annastacia Kimtai: Yeah.

Paul Russo: You can take a.

Paul Russo: You can take a-

Annastacia Kimtai: My voice was even going to be louder. Thank you so much. The question of agriculture. For the last four years, the rains have been quite adequate in our country, Kenya. Let's start with that. Second, there was subsidy of fertilizer. Third, the coffee did so well. There was adequate cash flows to actually increase financing to the agricultural sector. Thank you.

Paul Russo: Yeah. I think it's just important to say that the funding is seasonal. It's harvest linked, so it's not long-term to that effect. I think we must also acknowledge, and Anastasia is spot on, that a bit of agriculture in Kenya is moving out of rain-fed, and is starting to demonstrate cash flow, and ability to, and sustainable models for it to repay. I think that's a significant change, particularly in Kenya. We've thanked God for the four years of sustainable rain, but as you would know, every single person you sit next, you will know somebody who is in agriculture that has moved away from rain-fed. We need to support that growth because we know El Niño will check in in October, then La Niña will check in after that. We know the circles.

Yeah, yeah, my voice was even going to be louder, so thank you so much. The question of agriculture: for the last four years, the rains have been quite adequate in our country, Kenya. Let's start with that. Then second, there are subsidies on fertilizer. Third, the coffee did so well, so there was adequate cash flow to actually increase financing to the agricultural sector. Thank you.

Yeah, and I think it's just important to say that the funding is seasonal. It's, it's, it's, it's, um,

Harvest linked. So it's not long term to that effect, but I think we must also acknowledge—and then I started a spot on.

There is a bit of agriculture in Kenya that is moving out of rainfed.

Paul Russo: I think that's a significant change, particularly in Kenya. We've thanked God for the four years of sustainable rain, but as you would know, every single person you sit next, you will know somebody who is in agriculture that has moved away from rain-fed. We need to support that growth because we know El Niño will check in in October, then La Niña will check in after that. We know the circles.

And starting to demonstrate cash flow and ability to, and sustainable models for you to repair. I think that's a significant change, particularly in Kenya.

if if

We thank God for the four years of sustainable rain.

That you would know every single person. You see, next, you will know somebody who is in agriculture that has moved away from Rainford.

and we need support, um, that that growth because we know

Elena will check in in October.

Then Lana will check in after that.

Paul Russo: For us to then be food secure, for us to be able to be sustainable in a critical sector like agriculture, we have to move away from rain-fed agriculture, and banks have to play a role. I think we've moved from beginning of prior from negative 2 lending to credit private sector to, according to CBK yesterday, to 10.6%, if I'm not wrong, 10.5%, 10.6%. That tells you that the commitment about lending and the performance. The good thing is at the same time, NPL is coming down across the industry. I thought I'd just expound that. The problem with NPL for KCB Group is we've been doubted for long. Lawrence has been presenting that slide, and he's been a preacher of hope. But for the institution, the actions have been in place, right? I always say, clearing NPL stock is like clearing traffic jam.

We know the circles, and for us to then be...

a food secure for us to be able to be sustainable in a critical sector like agriculture. We have to move away from rainfed, Agriculture, and banks have to play a role.

And I think, um,

We've moved from.

Beginning of prior from negative 2 lending to credits private sector, to—according to CBK yesterday—10.6, if I'm not wrong, 10.5, 10.6.

Paul Russo: The good thing is at the same time, NPL is coming down across the industry. I thought I'd just expound that. The problem with NPL for KCB Group is we've been doubted for long. Lawrence has been presenting that slide, and he's been a preacher of hope. But for the institution, the actions have been in place. I always say, clearing NPL stock is like clearing traffic jam.

That tells you, um, about the commitment to lending and performance. And the good thing is, at the same time, NPL is coming down.

Across the industry. Um, so I thought I'd just expound that the problem with NPL for KCB is, we've been doubted for long.

Les has been presenting that slide, and he's been a preacher of hope.

But for the institution, the actions have been in place.

Right? And I always say, clearing NPL stock is like clearing a traffic jam.

Paul Russo: When you clear traffic jam, the guy at the end does not see there's a movement. It will take a while before the person on the tail end to realize. That, I think, what investors have been. Investors have been on the other side. They're not seeing you moving it, and you're not translating it also to dividends. I thought I'd just touch on those. Finally, what Lawrence said, I don't think we were anywhere close without special dividend, Lawrence, 30%. But we're saying we are putting it out there. That's what we said, and we'll get to that 35%. But we must get to the 50% under sustainable performance. Yeah. While making the correct investments as well. Thank you.

When you clear a traffic jam, the guy at the end does not see there is a movement.

Paul Russo: Finally, what Lawrence said, I don't think we were anywhere close without special dividend, Lawrence, 30%. But we're saying we are putting it out there. That's what we said, and we'll get to that 35%. But we must get to the 50% under sustainable performance. Yeah. While making the correct investments as well. Thank you.

I think what investors have been—the investors have been on the other side. They're not seeing you moving it, and you're not translating it also to dividends. So I thought I'd just touch on those, and finally what Lawrence said.

I don't think we were anywhere close without special dividend laws at 30%, but we're saying, we are putting it out there.

That's what we said. I will get to that 35, but we must get you to the 50 under sustainable performance.

Yeah, well, making the correct investments as well. Thank you.

Peter Mora: Good. Thank you. Thank you, team, for that. We will take a few comments online and some questions. Kimani01, as usual, Simba always delivers. Kazi safi. Muokim says solid results. Yvonne Ochieng says, I mean, clean book. The NPL, and I know, Lawrence, you have spoken about that. When can you start keeping a clean book? That is from Yvonne Ochieng. Lastly, another comment there from Moses Kitek. Great work on NPL. A question. Let me pick two more. Group Chairman, looking beyond the H1 2026 numbers, how does the board assess the group's progress against its long-term vision of being the preferred financial services partner in East Africa? What gives the board confidence about KCB's future growth trajectory? Question again. How does the board assess the group's progress against its long-term vision of being the preferred financial services provider?

Operator: Good. Thank you. Thank you, team, for that. We will take a few comments online and some questions. Kimani01, as usual, Simba always delivers. Kazi safi. Muokim says solid results. Yvonne Ochieng says, I mean, clean book. The NPL, and I know, Lawrence, you have spoken about that. When can you start keeping a clean book? That is from Yvonne Ochieng. Lastly, another comment there from Moses Kitek. Great work on NPL.

But thank you. Thank you, Tim, for that. So, we'll take a few comments online.

And some questions, uh, Kimani. 01. As usual, Simba always delivers kazi safi.

Mo Kim says solid results.

Uh Evo says I mean clean book when can you the npl and I don't know you have spoken about that when can you start keeping a clean book?

Operator: A question. Let me pick two more. Group Chairman, looking beyond the H1 2026 numbers, how does the board assess the group's progress against its long-term vision of being the preferred financial services partner in East Africa? What gives the board confidence about KCB's future growth trajectory? Question again. How does the board assess the group's progress against its long-term vision of being the preferred financial services provider?

That's from Ivon, um, Aen. And then lastly, another comment there from, uh, Moses Ka — great work on N.

A question. Let me pick.

2, more group chairman.

Looking beyond the H1 2026 numbers, how does the Board assess the Group's progress against its long-term vision of being the preferred...

Financial Services partner in East Africa.

And what gives the board confidence about KCB’s future growth trajectory? Um, question again, how does the board assess...

Peter Mora: What gives the board confidence about KCB's future growth trajectory? Paul, the operating environment, and I know you spoke about that at length, across our regional markets continues to evolve rapidly. What would you consider the three most significant strategic achievements for KCB Group during the H1? How does that position us for the H2 of 2026? Lawrence, investors and analysts are increasingly focused on resilience, efficiency, and capital strength. Which financial indicators from today's results best demonstrate the quality and sustainability of the group performance? Quite a mouthful questions, and I think we can take those ones as I look for others online. Yeah.

Operator: What gives the board confidence about KCB's future growth trajectory? Paul, the operating environment, and I know you spoke about that at length, across our regional markets continues to evolve rapidly. What would you consider the three most significant strategic achievements for KCB Group during the H1?

The group's progress against its long-term vision of being the preferred financial services provider.

And what gives the Board confidence about KCB's future growth trajectory?

Uh, Paul, the operating environment—and I know you spoke about that at length—um, across our regional markets continues to evolve rapidly.

What would you consider the three most significant strategic achievements for KCB Group?

Operator: How does that position us for the H2 of 2026? Lawrence, investors and analysts are increasingly focused on resilience, efficiency, and capital strength. Which financial indicators from today's results best demonstrate the quality and sustainability of the group performance? Quite a mouthful questions, and I think we can take those ones as I look for others online. Yeah.

Within the first half.

And how does that position us for the second half of 2026?

Florence, investors and analysts.

Are increasingly focused on resilience.

Efficiency and capital strength.

Which financial indicators from today's results best demonstrate the quality and sustainability?

Of the group performance.

Those are quite some mouthful questions, and I think we can take those ones as I look for others online.

Joseph Kinyua: Yeah. Thank you very much, Peter. I think the question that was put to me is how the board, in the context of how the bank has performed as a group. What we see, if you look at the performance going back to the year 2023, as indicated by Paul, clearly we have done very well, and the reason for that is because we have a strong team dedicated to deliver. We as a board are quite confident. The leadership of the management knows what they are doing. Of course, working together with them, we are able to identify where we needed to take some steps that can help us to ensure we remain on that path of a positive growth. I think one can be able to see from how we have done.

Yeah, thank you very much. Uh, uh, Peter.

I think the question that was put to me is how the board, uh...

in the context of how the bank has performed as a group.

Uh,

The what we see.

If you look at the performance, going back to the year 2023, as indicated by Paul,

Clearly, we have done very well, and the reason for that is because we have a strong team dedicated.

To deliver.

Joseph Kinyua: We as a board are quite confident. The leadership of the management knows what they are doing. Of course, working together with them, we are able to identify where we needed to take some steps that can help us to ensure we remain on that path of a positive growth. I think one can be able to see from how we have done.

And we as a board.

Are quite confident.

The readership of the management knows what they are doing and, of course, working together with them.

We are able to identify why we need to.

Make some.

Joseph Kinyua: If you recall 2023, when I just joined the board, I recall indicating that I really couldn't believe that we have not been able to pay dividend for the years before. We committed that together with the team, we will make a difference. Of course, as a board, we sat with our team, and they came up with a strategy which we have seen positive results. Over the last two years, three years, we have done so well. This can be seen in the context of even the trading in the stock exchange markets. If the bank was not doing well, and if it is not being managed properly by the team that is there, that will also show. That is another indicator that gives you confidence that indeed you are on the right track.

Uh, take some steps that can help us to ensure we remain on that path of positive growth. And I think one can be able to see from how we have done. If you recall, in 2023, when I just joined the board...

I recall.

I really couldn't believe that we have not been able to pay dividends for the years before. And we committed that, together with the team, we will make a difference.

Of course, as a board, we sat with our team and they came up with the—

Joseph Kinyua: Over the last two years, three years, we have done so well. This can be seen in the context of even the trading in the stock exchange markets. If the bank was not doing well, and if it is not being managed properly by the team that is there, that will also show. That is another indicator that gives you confidence that indeed you are on the right track.

a strategy, a strategy, which we have seen positive results,

We have done so well.

And this can be seen in the context of even the trading in the stock exchange markets. If the bank was not doing well, and if it is not being managed properly by the team that is there,

Joseph Kinyua: As a board, we are confident, and I think also, Paul Russo, in terms of hope never dies. It is always good to remain hopeful. If you lose hope, then you collapse. We have to, and you as the people putting together the effort that has made us achieve by not allowing yourself to appear to be hopeless, that is why you have come this far. With that, I believe the person who have read the question can appreciate that we have a bank that, as I did mention, it is a bank of choice. KCB is a bank that we feel proud of, and I would almost tell every customer to even walk out of other banks.

Uh, that will also show—that is another indicator that gives you confidence that indeed you are on the right track. So, as a Board, we are confident.

And I think we also Paul in terms of a hope, hope Never Dies. It's always good to. We Made It hopeful if you lose the hope and then you collapse we have to and we you as the people

Joseph Kinyua: With that, I believe the person who have read the question can appreciate that we have a bank that, as I did mention, it is a bank of choice. KCB is a bank that we feel proud of, and I would almost tell every customer to even walk out of other banks.

Putting it together, the effort that has made us achieve, by not allowing yourself to appear to be hopeless—that is why you have come this far.

So, with that, I believe the person who raised the question can appreciate that we have a bank—a bank that, as I did mention,

It is a bank of choice. KCB is a bank that we feel proud of.

and,

I would.

Joseph Kinyua: Of course, we have to have that competition and we have to continue making sure we are providing quality services for us to maintain the customers in terms of deposits and the customers in terms of credit facilities that we are providing. Asante.

We almost tell every customer to even work out of our banks. But of course, we have to have, you know, that competition, and we have to continue making sure we are providing quality services for us to maintain the customers in terms of deposits and the customers in terms of credit facility.

That is what we are providing. Asante.

Paul Russo: Thank you. Did I hear a clean book? Was that the question?

Thank you. Thank you, J. Did I hear a clean book?

Joseph Kinyua: Yes.

Paul Russo: I think, yeah, because I think it is important to respond to that question, and I know Lawrence was taking notes. In the last three years, I think, again, Bernard is not here. Our NPL over the last three years is 3.5. Migration. It is probably the lowest it can be in this side of town. We are just cleaning up that legacy. I think I am on record saying we took the bold decision in 2022 together with the boards, 2022, 2023, to make sure that we understood the stock. Then we ring-fenced and allowed the expert teams to then attack that stock, but released the book and the rest of the teams to then run the clean.

Was that the question? Yes. But I think, yeah, because I think it's important.

To respond to that question—and I know Lawrence was taking notes.

But in the last three years, I think—uh, again, Bernard is not here—our NPL of...

The last 3 years is 33.5.

Migration.

It's probably the lowest it can be on this side of, uh, of town.

Paul Russo: I think I am on record saying we took the bold decision in 2022 together with the boards, 2022, 2023, to make sure that we understood the stock. Then we ring-fenced and allowed the expert teams to then attack that stock, but released the book and the rest of the teams to then run the clean.

So, we're just cleaning up that Legacy, and I think I'm on record saying, we took the Bold decision in 2022 together with the board.

2022 2023, to make sure that we understood the stock.

Paul Russo: In a way, you can say, it might be controversial, you ring-fence the bad side of the bank for cleanup, and you let the good side of the bank to run. Instead of burdening everybody else with the baggage of the sins of our forefathers, as we used to refer to it, and now it is paying. Unfortunately, Bernard has been present all the time when we are answering difficult questions. When it is good time, he is not here. That is how people fail to go to heaven the day they work so hard, you do not drink, then the day the Trump is. I think it is important to recognize those teams, and I like doing that in public here, because they spent a lot of time when there has been a lot of doubt, just work and deal with that.

Then we ring first and allow the teams, the expert teams, to then attack that stock. But release the book and the rest of the teams to then run the clean.

In a way you can say and it might be controversial. You ring first the bad side of the bank for clean up and you let the good side of the bank to run.

Instead of burdening, everybody else with the baggage of uh, the sins of our forefathers, as we used to refer to it.

Paul Russo: Unfortunately, Bernard has been present all the time when we are answering difficult questions. When it is good time, he is not here. That is how people fail to go to heaven the day they work so hard, you do not drink, then the day the Trump is. I think it is important to recognize those teams, and I like doing that in public here, because they spent a lot of time when there has been a lot of doubt, just work and deal with that.

And now it's paying off, and unfortunately, Bernard has been present all the time when we're answering difficult questions. When it is good, he's not here.

but,

That's how people fail to go to heaven, the day.

That's so hard. You don't drink. And then you, the day, the trumpet...

Is so I think it's important to recognize those teams and I like doing that in public. Yeah, because I spent a lot of time

when there’s been a lot of doubt.

Paul Russo: The underwriting, the work that the corporate teams, particularly in Kenya, took to have an origination team that looks at facilities before they move to credit, and therefore they self-regulate on facilities, is we just did not go to recover. We set out structures and governance that work, that dealt historically. Let me just highlight a few, because I think I have said it a number of times, but because they were doubting me, maybe chairman, they did not believe. One is, you have got to be absolutely clear on your governance structures, your board credit committee, the mandates, and making sure that works fully. Two, that includes as basic as skill metrics and balancing that.

Just work and deal with that. But also the underwriting, the work that the corporate teams particularly in Kenya took to have an origination team that looks at facilities before they move to credit and therefore they self-regulate.

On on, on on on facilities is is, is we just didn't go to recover. We set out structures and governance. That work that dealt historically.

Paul Russo: Let me just highlight a few, because I think I have said it a number of times, but because they were doubting me, maybe chairman, they did not believe. One is, you have got to be absolutely clear on your governance structures, your board credit committee, the mandates, and making sure that works fully. Two, that includes as basic as skill metrics and balancing that.

Right? Um, and let me just highlight a few. Because I think I've said it a number of times, but because they were doubting me, maybe chairman, they did not believe,

One is, um, you've got to be absolutely clear on your governance structures—your board, credit committee, the mandates—and making sure that that works fully.

Paul Russo: Second is that split of role between credit and origination, and to make sure that business units and function, we made sure subsidiaries who are now fully responsible of their credit, and there is no responsibility by group. Therefore, they take the decisions, and they are held accountable at subsidiary level, without any consideration from group. Obviously, then the engagement with staff in terms of quality and flow. Finally, the systems, the upgrade, the changes in systems that we have made, is starting to pay. In terms of the special assets team, Anastasia, for example, in your world, you have recruited some amazing resources from market to deal with that. Bringing in expert and experienced resources into that team has now made sure that we can tackle that. So I do not think the question is what is green. For me, 3.5% in the last four years is deep green. Yeah?

2. And, and that includes as basic as skill metrics and balancing, that second is that split of role between credit and origination. And to make sure that, you know, business units, and function, we made sure subsidiaries were now fully responsible of the credit and there's no responsibility by group. And therefore, they take the decisions and they held accountable at subsidiary level. Um without any any any any result from group?

And, obviously, then the engagement with staff.

Paul Russo: Finally, the systems, the upgrade, the changes in systems that we have made, is starting to pay. In terms of the special assets team, Anastasia, for example, in your world, you have recruited some amazing resources from market to deal with that. Bringing in expert and experienced resources into that team has now made sure that we can tackle that. So I do not think the question is what is green. For me, 3.5% in the last four years is deep green. Yeah?

In terms of quality flow.

and finally the assistance, the upgrade the changes in systems that we've made um starting to pay um and in terms of the special asset team

To deal with that, bringing in experts and experienced resources into that team has now made sure that we can tackle that.

I don't think the question is, "What is green for me?" 3.5% in the last four years is deep green.

Paul Russo: Therefore, Lawrence, you can shout to say it is green. But we know that we have to deal with the legacy, and we can demonstrate we have dealt with it. Then there was a question about three significant achievements. It is hard to say, because when I start saying these, people might say I favor certain people that I mention on. The teams have pulled on from different corners. But KCB Kenya bouncing from the 2022, 2023 performance is one of my significant highlights. Think about it. It was the lowest at that point, and that is why we did not pay dividends. At that time, subsidiaries were contributing more, that is why we did not issue a profit warning. That bounce by KCB Kenya, just getting staff out of that low moment, for me, that is one of the key achievements that we have seen.

But we know that we have to deal with it.

And we can demonstrate we've dealt with it.

Paul Russo: The teams have pulled on from different corners. KCB Kenya bouncing from the 2022, 2023 performance is one of my significant highlights. Think about it. It was the lowest at that point, and that is why we did not pay dividends. At that time, subsidiaries were contributing more, that is why we did not issue a profit warning. That bounce by KCB Kenya, just getting staff out of that low moment, for me, that is one of the key achievements that we have seen.

I don't know that question about three significant achievements. It's hard to say because when I start saying these, people might say I favor certain people that I mention on the teams who have pulled on from different corners.

But but kcb Kenya bouncing.

From the 2022.

2023 performance is one of my significant highlights.

Think about it. It is it was the lowest at that point and that's why we didn't pay dividends.

At that time, the C's were contributing more. That's why we didn't issue.

A profit warning.

That Bounce by kcb.

Paul Russo: The second is getting Trust Merchant Bank onto the same core banking system as the rest of the group this year. Because that will give us the opportunity to accelerate the contribution of Trust Merchant Bank group. So getting Trust Merchant Bank onto T24, in a market French-speaking, big, Eastern DRC in the way it is, Ebola checked in. I think we have to give them credit. Thanks to Dennis' team and the contribution from group IT to make us progress. I think I will mention on the third one is that collabo between DFS and Riverbank Solutions Ltd has pushed, and we can see the results for those of us that are in. We want them to do a lot more. I will just stop there, but I think it has been firing from. It is coming together in my view, but I thought because the person is online, let me just explain a little bit more.

Just getting stuff out of that low moment for me, that is one of the key achievements.

The second is getting tmb onto the same core banking system as the rest of the group.

This year.

Because that will give us the opportunity to accelerate the contribution of the TMB Group, so guarantee into, onto T24 in a market, French-speaking.

Big.

East, in the way it is.

Paul Russo: Thanks to Dennis' team and the contribution from group IT to make us progress. I think I will mention on the third one is that collabo between DFS and Riverbank Solutions Ltd has pushed, and we can see the results for those of us that are in. We want them to do a lot more. I will just stop there, but I think it has been firing from. It is coming together in my view, but I thought because the person is online, let me just explain a little bit more. Thank you. Maybe Lawrence.

Um you know a bowler checked in. I think we have to give them credit and thanks to Dennis's team and the contribution from group it to make to make to make to make us, you know, progress.

And I think I'll I'll mention on the third 1 is that collaborative between DFS and river banks.

Um you know as as as as as pushed and and we can see the results for those of us that are in uh we want them to do a lot more.

uh,

Paul Russo: Thank you. Maybe Lawrence.

You know, so I'll just stop there, but I think it's been firing from—it's coming together, in my view. But I thought, for the person who is online, let me just explain a little bit more. So, thank you.

Lawrence Kiambi: Yeah. Thanks. There was a question about resilience and financial strength and which indicators in today's results would I pull out as key, in terms of supporting that. So the first one would be capital adequacy. Just looking at the buffer, capital buffers across the group. That tells you that if we do not grow, it is not because we do not have capital. So you already have a firm base that will support your growth. Second one, which is not entirely a KPI, but for me, it is just the shape of how we have grown. It talks to the sustainable performance. I have always said you cannot cost cut yourself to prosperity. So you have to grow from the top. 10% total income growth, good management of interest expense, sweating the balance sheet, that is actually what has driven your top-line growth.

Yeah.

So, thanks. There was a question about, uh,

Resilience and financial strength and which indicators in today's results. Um, you know, would I pull out as as as key, uh, in terms of supporting that? So, the first 1 will be Capital adequacy, just looking at the buffer, Capital buffers across the group. Uh, you know, that tells you that, you know, we

Lawrence Kiambi: Second one, which is not entirely a KPI, but for me, it is just the shape of how we have grown. It talks to the sustainable performance. I have always said you cannot cost cut yourself to prosperity. So you have to grow from the top. 10% total income growth, good management of interest expense, sweating the balance sheet, that is actually what has driven your top-line growth.

We we if we don't grow, it's not because we don't have Capital. So you already have a farm base uh that will support your your your your growth.

Second 1.

Which is is not entirely a kpi. But for me, it's just a shape of how we have grown.

Yeah, and it talks to the sustainability, sustainable performance.

Lawrence Kiambi: I think that is an indicator that business is actually growing from the fundamental strategy and underlying indicators of the business. So that is important. Cost-to-income ratio is another one. Because this talks to you are actually putting in cost. If you are going to grow or make money, you have to invest. But that indicator shows that whatever you are putting in, you are actually getting back more. So productivity, efficiency. So that one. NPL, definitely, I cannot rule that out. The way it is as a ratio, where it is in terms of value of stock, helps us be able to monetize what we have recovered. So that KES 30 billion has been put to good use. It has been invested, and it has come back in terms of return. I will say NFI as well, but ish.

You I always I've always said you cannot cost cut yourself in 2 to Prosperity so you have to grow from the top uh 10% um total income growth, good management of interest expense. Uh you know sweating the balance sheet that is actually what has driven your Topline growth. I think that is an indicator that business is actually growing from the fundamental uh, strategy and underlying indicators of of the business. So so that that is that is important.

Cost to income ratio is another 1. Um, because these talks to your actually,

In putting in cost, if you're going to grow or make money, you have to invest.

Lawrence Kiambi: Productivity, efficiency. NPL, definitely, I cannot rule that out. The way it is as a ratio, where it is in terms of value of stock, helps us be able to monetize what we have recovered. So that KES 30 billion has been put to good use. It has been invested, and it has come back in terms of return. I will say NFI as well, but ish.

Lawrence Kiambi: The reason why I would mention NFI is the performance on FX, especially in Trust Merchant Bank, Kenya volume coming back, the performance on service charge. Those two are very good indicators. Lending fee on the part of digital part. We are still below what our outlook was. That is why I say ish. Yes, I can see sparks. I need to start seeing fire.

But that indicator shows that whatever you're putting in, you're actually getting back more. Yeah, so productivity, efficiency. Uh, so, so, so that one, NL, definitely, I cannot, I cannot rule that out. Um, the, the, the, where it is as a ratio, where it is in terms of value of stock, helps us be able to monetize what we've recovered. So that $30 billion has been put to good use. It's been invested and it has, uh, come back in terms of, of, of return. I will say NFI as well, but is...

The reason why I would mention NFI is,

Of digital part. But we are still below.

What? Our Outlook was. So, so that's why I say ish. It's it's, it's yes, I can see Sparks.

Peter Mora: Thank you, Lawrence. I think we will take one last round of questions. Just to pick a few comments online, even from our staff. I need to single out two from Everton Okorito and Henry Mugambi, two gentlemen who are very good brand ambassadors. Maybe next time we will consider that for you to attend here physically. I think the comments, is quite some comments on the group. Lawrence, I know you had responded to it in a way, but the entry into Ethiopia, I think that question has resurfaced several times here, just how that is looking. I think you can take that. Any questions from the floor as we close? I do not see any hands. Maybe. Yep, sorry. Go ahead.

Operator: Thank you, Lawrence. I think we will take one last round of questions. Just to pick a few comments online, even from our staff. I need to single out two from Everton Okorito and Henry Mugambi, two gentlemen who are very good brand ambassadors. Maybe next time we will consider that for you to attend here physically. I think the comments, is quite some comments on the group.

I need to start seeing FIRe.

Thank you. Thank you, audience. Um, I think we'll take one last round of questions.

Just to pick a few comments online, even from our staff—some, too. I need to send word to them from...

Operator: Lawrence, I know you had responded to it in a way, but the entry into Ethiopia, I think that question has resurfaced several times here, just how that is looking. I think you can take that. Any questions from the floor as we close? I do not see any hands. Maybe. Yep, sorry. Go ahead.

Everton to Cito and Henry mumbi some 2 Gentlemens. They've been next time, we will consider that for you to attend here, physically. I think your comments is quite some comments on the group.

Uh, Lawrence, maybe you can I know you had. You had responded to it in a way but the entry of, uh, into Ethiopia. I think that questions has resurfaced several times here. Just, um,

How that is looking?

so I think you can, you can take that um any questions from the floor as we close

I don't see any hands, maybe? Yep. Sorry.

Sally Chepkore: Thank you. I have a comment. I want to say this in English. Since we are one family, I have three issues that are in regards to the staff. We do the right thing at the right time. Do not be complacent. That is number 2, and then stronger together. Thank you so much.

[Analyst 3]: Thank you. I have a comment. I want to say this in English. Since we are one family, I have three issues that are in regards to the staff. We do the right thing at the right time. Do not be complacent. That is number 2, and then stronger together. Thank you so much.

Go ahead. Thank you.

Have a comment.

Want to say this in English.

That seems like we are one family.

I have 3 3, 3 issues.

That in regards to the stuff.

That.

We do the right thing at the right time.

Do not be complacent. That's number 2 and then stronger together.

Thank you so much.

Peter Mora: Thank you. Thank you so much, Sally, for that.

Operator: Thank you. Thank you so much, Sally, for that.

Sally Chepkore: I want to say, finally, I want to say we are really impressed. Me as a shareholder, on behalf of the rest of the shareholders, we are really impressed, and we are really proud of you because posting such kind of results entails a lot of commitment, a lot of resilience, a lot of effort. We are really proud of you, and we are here to encourage you to do more. Thank you so much.

[Analyst 3]: I want to say, finally, I want to say we are really impressed. Me as a shareholder, on behalf of the rest of the shareholders, we are really impressed, and we are really proud of you because posting such kind of results entails a lot of commitment, a lot of resilience, a lot of effort. We are really proud of you, and we are here to encourage you to do more. Thank you so much.

Thank you. Thank you so much, Sally, for that. I want to say...

Finally.

I want to say we are really impressed, me as a shareholder.

On behalf of the rest of the shareholders, we are really impressed, and we are really proud of you.

Peter Mora: Great. Thank you. Peter Mora, make sure that the clip on the three points is played to all staff.

Paul Russo: Great. Thank you. Peter, make sure that the clip on the three points is played to all staff.

Because posting such kind of results, entails a lot of commitment. A lot of resilience, a lot of effort. So we are, we are really proud of you and we are here to encourage you to do more. Thank you so much.

Lawrence Kiambi: Yes.

Operator: Yes.

Very good. Thank you. Thank you. Um, Peter, make sure that the clip on the three points is played to all staff.

Peter Mora: They recorded? No, they recorded. It was recorded. Yeah.

Paul Russo: They recorded? No, they recorded. It was recorded. Yeah.

Yes, they recorded.

No, no, they recorded. It was recorded.

Lawrence Kiambi: Sally Chepkore, just to confirm, it is being recorded. We have the recording there, and we will make sure it gets to staff as per policy.

Operator: Sally Chepkore, just to confirm, it is being recorded. We have the recording there, and we will make sure it gets to staff as per policy.

Was recorded.

Paul Russo: Yeah. Just make sure it's played to staff, because that's actually the owner of Capital. The owner of Capital is sending 3 key messages to you. We are lucky that you are given raw as it is. Isn't it? Let's make sure that is replayed. Sally, this team, I've led the team. I've been in this team for 12 years. I've led this team for 4 years. The question that was asked to chairman, I am extremely confident that you haven't seen the momentum yet. Just watch this space. I think we are deliberate. Remember, I used the word sustainable performance. We are deliberate about sustainable performance, not just performance. We have complete alignment across the leadership team and across our staff. I think that's important for me to reemphasize.

Yeah. Just to confirm, it's being recorded. They have the recording there, and we'll make sure it gets to Surface. Yeah, so just make sure it's played, um, to staff because—

That's actually the owner of capital.

Yeah.

And the owner of capital is sending 3 key messages to you.

And and and and then we are lucky that you are given it. You are given raw as it is.

So let's make sure that that is replayed.

And thirdly, this team—it's been, it's been, uh, I've led the team; I've been in this team for 12 years.

I've led this team for four years.

Paul Russo: The question that was asked to chairman, I am extremely confident that you haven't seen the momentum yet. Just watch this space. I think we are deliberate. Remember, I used the word sustainable performance. We are deliberate about sustainable performance, not just performance. We have complete alignment across the leadership team and across our staff. I think that's important for me to reemphasize.

I am extremely—you know, the question was that—that was...

Us the chairman.

I am extremely confident that, uh,

You haven't seen the momentum yet.

Just watch this space.

Uh,

I think we—we are deliberate. Remember, I used the word 'sustainable performance'? We are deliberate about sustainable performance, not just performance.

And we have complete alignment across the leadership team and across our staff.

Peter Mora: With the board and with the conversations that we have with the board. They're not easy. I laugh here, but when I'm in the boardroom, I'm a staff. I think we are fully aligned in terms of the direction of travel. Many a times we don't celebrate from where we've come from, isn't it? 2023 May was the lowest for this institution. Standing there and reading zero dividend. Today we're here declaring an interim dividend, not special, from performance of the institution. It's something that I'm proud of, and thank you to the board and everybody else for supporting us to get to this point. I think on Ethiopia, it's a market as well as we are interested in the market, but we have to be responsible. There are certain steps we have to fulfill. Working with advisors and third parties. We have experience in making acquisitions.

Paul Russo: With the board and with the conversations that we have with the board. They're not easy. I laugh here, but when I'm in the boardroom, I'm a staff. I think we are fully aligned in terms of the direction of travel. Many a times we don't celebrate from where we've come from, isn't it? 2023 May was the lowest for this institution. Standing there and reading zero dividend.

um, and I think that's important for me to reemphasize with the board and with the conversation that we have with the board,

Um they're not easy, I love here. But uh when I'm in the boardroom, I'm a staff.

Uh, so I think we are fully aligned in terms of the direction of travel. Um, many times we don't celebrate how far we've come.

Isn't it 2023? May was the lowest.

This institution.

you know, standing there and reading zero dividend

Paul Russo: Today we're here declaring an interim dividend, not special, from performance of the institution. It's something that I'm proud of, and thank you to the board and everybody else for supporting us to get to this point. I think on Ethiopia, it's a market as well as we are interested in the market, but we have to be responsible. There are certain steps we have to fulfill. Working with advisors and third parties. We have experience in making acquisitions.

And today, we are here declaring an interim dividend, not a special dividend.

From performance of the institution.

Get to get to this.

I, I think on ethopia, um,

There is.

It's a market that, Lorenz, we are interested in. But we have to be responsible, so there are certain steps we have to fulfill.

um,

Paul Russo: We've made acquisitions, how many? We made acquisition of BPR, Banque Populaire, TMB, Riverbank here, acquisition with Pesapal. Same management team, same board involved. We're just making sure that we do our homework. At the end of the day, remember, you are taking a shilling from dividends to invest. You need to be able to show the shareholder that it's worth it. Therefore, we're just going through our motions to make sure that it's-

Working with the advisors and, you know, third parties. We, we have experience in making Acquisitions. We've made Acquisitions. How many we met acquisition of BPR Bank. Popular tmb river bank here.

position with

Path. Um, same management, team same board involved. So we're just making sure that we do our homework.

Um, at the end of the day, remember you are taking a shielding from dividends to invest.

You need to be able to show the shareholder that it's worth it.

Paul Russo: We've made our view clear. So far, at this point, we don't want to do a greenfield. That just makes you do a little bit more work. I think lesson 101, it is not just about the performance of the institution you're considering. It is the fit that is important. When you assess the fit, there are so many non-financial assessments that you have to make, and we've got to go through those motions. Here, to just respond to the person who was like, we'll do our homework. At the right point, we'll come in. Lawrence has assured me that we have the funding when the time comes, and he has assured the board. Don't worry about dividend. The shareholders were saying, will that affect our dividends if you make the acquisition, or do we do the projections?

And therefore, we're just going through our motions to make sure that, uh, it's it's, you know,

And we've made our view clear. So far, at this point, we don't want to do a greenfield.

Let's just mix, mix, mix, mix. You do a little bit more, more work. Um, and I think, you know, Lesson 101: It is not just about the performance of the institution you're considering, it is the fit.

Paul Russo: Here, to just respond to the person who was like, we'll do our homework. At the right point, we'll come in. Lawrence has assured me that we have the funding when the time comes, and he has assured the board. Don't worry about dividend. The shareholders were saying, will that affect our dividends if you make the acquisition, or do we do the projections?

That is important and when you assess the fit, uh there are so many non-financial assessments that you have to make and and we've got to do through those go through those motions. So here to to just respond to the person was like I mean we'll do our homework at the right point will come in. Um,

Assured me that we have the funding when the time comes.

And as assured the Board. So,

Paul Russo: I know those are the questions that people are not servicing. We are the same guys who stood here and said we are looking at a 35% payout ratio, isn't it? Final comment is, when you verbalize, you make sure you achieve. When I verbalize, the pressure is on every KCB leader that is in the room. That is always the trick. If you want it done, say it, then go and do what you said. So thank you very much. Back to you, Peter, as we close.

Don't worry about dividends. You know that shareholders who are saying, 'Will it not affect our dividends if you make the acquisition or do the projections?' I know those are the questions that people are not servicing.

uh,

But we are the same guys who study and say we are looking at the 35th.

and what final comment is, when you verbalize, you make sure you have achieve

So, when I verbalize, the pressure is on every case leader that is in the room.

That's always the trick if you want it done.

Say it.

And then go and do what you said.

Peter Mora: Thank you. Thank you, Paul. Thank you, Chairman. Thank you, Lawrence, and thank you to everybody for joining us this evening, those who are here with us physically and those who are virtual. Thank you. We appreciate. For the media, the press release has been shared with you on your emails. For those who do not have, please reach out to Geoffrey or myself. For the analysts, you have your call on Monday with the leadership team, Monday afternoon. Please log in and get to get deeper into the numbers. Otherwise, thank you very much, everybody. Enjoy the refreshment out there, and also take an opportunity to interact with the leadership and everybody else. Asante sana.

Operator: Thank you. Thank you, Paul. Thank you, Chairman. Thank you, Lawrence, and thank you to everybody for joining us this evening, those who are here with us physically and those who are virtual. Thank you. We appreciate. For the media, the press release has been shared with you on your emails. For those who do not have, please reach out to Geoffrey or myself.

Operator: For the analysts, you have your call on Monday with the leadership team, Monday afternoon. Please log in and get to get deeper into the numbers. Otherwise, thank you very much, everybody. Enjoy the refreshment out there, and also take an opportunity to interact with the leadership and everybody else. Asante sana.

So, thank you very much. Back to your pictures, because... Thank you. Thank you, Paul. Thank you, Chairman. Thank you, Lawrence, and thank you to everybody for joining us this evening—those who are here with us physically and those who are virtual. Thank you, we appreciate it. And for the media, the press release has been shared with you on your emails. For those who don't have it, please reach out to Joffrey or myself.

[Company Representative] (KCB Group): When you start small, a choice becomes a habit, and a habit becomes a value. Teach them to save. They grow to spend with sense. Because tomorrow won't wait. Start now. As they grow, KCB grows with them.

For the analysts you have your call on Monday with the leadership team uh Monday afternoon. So please log in and get to see uh, to get deeper into the numbers. Otherwise, thank you very much. Everybody enjoy the refreshment out there, and also take an opportunity to interact with the leadership and everybody else.

When you start small, a choice will be something that has a...

habit.

Teach them to save, they grow to spend with friends.

Because tomorrow, we will wait to start now.

As they grow kcb grow.

Who's with them?

Paul Russo: Kenyans have always been suspicious when a good thing happens unexpectedly. Like when you are going to cross a road and a matatu driver actually stops and lets you cross. Or the first time I paid a shopkeeper directly from the KCB app, free of charge. Me, I started walking away before they could change their minds. Kidogo kidogo, I could hear someone going, " ." But I was already gone. If you cannot find your way home as my child, wewe si wa Wewe hiyo ni DNA.

Have always been suspicious when a good thing happens and expectedly. Like when you are going to cross a road and a tattoo driver actually stops and lets you cross,

Or the first time, I paid a shopkeeper directly from the kisebb app free of charge. Yeah, I started working away before they could change their minds.

[Company Representative] (KCB Group): Avoid transaction fees by paying bills directly kwa KCB Till on the KCB app.

Paul Russo: Oh, kulipa gas. I can pay direct. Why do I have to pay to pay?

I could hear someone going, "When's there?" but I was already gone. If you cannot find your way home as my child, where I see one transaction fee by paying bills directly for KCB till on the KCB app.

[Company Representative] (KCB Group): KCB Bank. For people. For better.

Why do I have to pay?

Pay kcb.

Bank for people for better.

[Company Representative] (KCB Foundation): Across Kenya's 47 counties, ability is everywhere, but opportunity is not. In 2025, bright but economically vulnerable students sat for the Kenya Junior School Education Assessment, knowing that performance alone would not be enough. In many homes across Kenya, this is where the story stops. But every year, thousands of young people refuse to let it end there. Through the KCB Scholars Programme, 1,000 students are selected each year, not because their lives are easy, but because their potential is undeniable. Slots are reserved for learners from marginalized communities, children living with disabilities, and talented young athletes whose dreams stretch beyond the field. For these students, education is no longer a distant dream. It is a beginning. For the 2026 cohort, interviews and talent trials were conducted at over 58 locations across Kenya.

Kenya's 47 counties—ability is everywhere, but opportunity is not.

In 2025, right? But economically vulnerable students were sad about the Kenya Junior Secondary Education Assessment, knowing that performance alone would not be enough.

In many homes across Kenya, this is where the story stops.

But every year, thousands of young people refuse to let it end there.

Through the kcb Scholars Program, 1,000 students are selected each year not because their lives are easy, but because their potential is undeniable.

Slots are reserved for Learners from marginalized communities.

Children, living with disabilities and talented. Young athletes whose dreams stretch beyond the field.

For these students, education is no longer a distant dream. It is a beginning.

Mendi Njonjo: The KCB Foundation is today at the Moi Avenue Primary School in Nairobi County, as well as other locations in all 47 counties. The objective is to look and interview students who finished their grade 9 exams and are transitioning into grade 10. KCB Bank sets aside 1.5% of its PBT towards supporting the activities that are delivered through the KCB Foundation. Through the foundation, as a key thematic pillar for our activities, we are able to give scholarships to the brightest and most needy students from high school through to tertiary.

For the 2026 cohort, interviews and talent trials were conducted at over 58 locations across Kenya.

Sally Chepkore: It's important to partner with KCB Foundation because we get the help of the branch managers in the mentorship of our students.

Yvonne Ochieng: I look at KCB Foundation as a godsend institution, and by partnering with KCB, makes us get more partners out there. Because they are saying, if a Kenyan brand can believe in you, that means you're doing something good.

The kcb foundation is today at the Moy Avenue Primary School in Nairobi County, as well as other locations in all 47 counties. And the objective is to look and interview students who finished their Grade 9 exams, and a transitioning into grade 10, kcb Bank set aside, 1.5% of its CBT towards uh, supporting the activities that are delivered through the kcb foundation through the foundation as a key thematic, uh, pillar for our activities. Uh, we are able to give scholarships to the most brightest and most needy students from high school through to tertiary. It's important to partner with CCB Foundation because we get the help of the branch managers in the mentorship of our students. Uh I look at kcb Foundation as a as a good sense institution and by partnering with kcb who makes us get more partners,

[Company Representative] (KCB Foundation): Since 2007, the KCB Scholars Programme has supported over 5,800 students through secondary school with an additional 1,000 set for 2026. This holistic support extends from senior school up to university level. The scholarship covers tuition, uniforms, books, mentorship, termly transport, shopping, pocket money, and psychosocial care. After interviews, selection panels moved into communities for home verification visits to understand the real circumstances behind the applications. In Cheplaskei village, Uasin Gishu County, we meet 15-year-old Valentine Kimboi. At nine years old, Valentine was struck by a debilitating illness that left her paralyzed from the waist down. With three siblings and parents surviving on a meager income, school became a luxury. Some weeks, she could only attend class once.

Out there because they are saying, if a Kenyan brand can believe in you. That means you're doing something good. Since 2007, the kcv Scholars Program has supported over 5,800 students to secondary school with an additional 1,000 set for 2026.

This holistic support extends from senior school up to university level. This scholarship covers tuition, uniforms, and books; mentorship; transport; shopping; pocket money; and psychosocial care.

After interviews, selection panels moved into communities for home, verification visits to understand the real circumstances behind the application.

In Chelsea Village, we meet 15-year-old Valentine. Kim Bui.

Valentine Kimboi: It was in 2019. At around 9:00 PM, I experienced severe back pain. By morning, my legs were paralyzed. I could not feel anything. We went to MTRH and were told that my nerves were affected.

[Company Representative] (KCB Foundation): Defying the limits set before her, Valentine scored 52 out of 72 points in her KCSEA exams. Her dream is to become a doctor. With no means to continue her education, she turned to the KCB Scholars Programme.

At 9 years old, Valentine was struck by a debilitating illness that left her paralyzed from the waist down. With three siblings and parents surviving on a meager income, school became a luxury. Some weeks, she could only attend class once. Defying the limits set before her, Valentine scored 52 out of 72 points in her college essay exams.

Valentine Kimboi: Her life changed. We started using diapers. She also started using a motorbike to go to school twice a week because of lack of school fees.

Her dream is to become a doctor, but she has no means to continue her education. She turned to the KCBS college program.

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