Co-operative Bank was placed second in the Kenya Bankers Association’s ranking of banks that lent to micro, small and medium-sized enterprises (MSMEs) over the nine-month period to September 2026, advancing KSh60.26 billion.
Equity Bank led the list with KSh127.95 billion in new MSME loans, while KCB Bank, Family Bank and NCBA Bank followed with KSh41.10 billion, KSh31.84 billion and KSh28.69 billion respectively.
The KSh60.26 billion disbursed by Co-operative Bank represented about 14.2 per cent of the KSh424.67 billion total new MSME credit supplied by Kenyan banks between January and September 2026.
The industry total marked a 30 per cent rise from KSh326.5 billion advanced over the same period in 2025 and moved the sector closer to its target of KSh500 billion for the full year.
Average commercial bank lending rates fell to 14.4 per cent in September 2026, down from 17.2 per cent recorded in November 2024, while private-sector credit growth increased to 10.6 per cent from 10.3 per cent in August.
“This surge in enterprise financing has been reinforced by an improving macroeconomic climate characterized by softening borrowing costs and revitalized private enterprise demand.”
The gross non-performing loan ratio improved to 13.9 per cent in September, compared with 14.8 per cent in June and 17.6 per cent in August 2025.
“Average commercial bank lending rates moderated to 14.4 per cent in September 2026, marking a meaningful easing from the 17.2 per cent recorded in November 2024. Cheaper credit has fostered renewed business confidence, lifting overall private sector credit expansion to 10.6 per cent in September from 10.3 per cent in August.”
The KBA report listed the top ten lenders as Equity Bank, Co-operative Bank, KCB Bank, Family Bank, NCBA Bank, Stanbic Bank, Absa Bank Kenya, I&M Bank, Kingdom Bank and Diamond Trust Bank.
The expansion in MSME financing is seen as vital for Kenya’s economy because small businesses provide significant employment and contribute to trade and production growth.
