BY James Wa Wanjiku
SBM Bank Kenya is stepping up its national expansion drive after recording a sharp rebound in profitability, opening its 34th branch as it seeks to capture a bigger share of Kenya’s growing banking market.
The lender has opened a new outlet in Nanyuki, Laikipia County, in a move that underscores its strategy of taking banking services to emerging commercial centres while leveraging a stronger balance sheet to finance growth.
The expansion comes after SBM posted one of its strongest financial performances in recent years, with profit before tax soaring 171.3 per cent to Sh548 million in the six months to June 2026.
Net profit after tax rose 88.2 per cent to Sh380.2 million, while operating profit nearly quadrupled, increasing 279 per cent to Sh852 million.
The results point to a significant turnaround for the lender and provide fresh momentum for its branch expansion and lending strategy at a time when competition among Kenyan banks is intensifying.
SBM’s customer deposits grew 24 per cent to Sh94 billion, while net loans and advances increased 18 per cent to Sh54.1 billion.
The growth pushed total assets to Sh109.9 billion, up from Sh105.7 billion at the end of December 2025.
The bank also recorded an improvement in asset quality, with its gross non-performing loan ratio falling sharply to 17.3 per cent from 32.4 per cent a year earlier.
SBM Bank Kenya chief executive Bhartesh Shah said the latest expansion was part of a broader strategy to combine physical banking with digital services as the lender pursues growth across the country.
“Nanyuki is exactly the kind of market our strategy is built for. The region is a high-growth economy where relationship banking and digital convenience should work together,” Shah said.
The new branch at Peak Place Building in Nanyuki will target businesses and institutions in sectors including tourism, conservancies, horticulture, agribusiness, real estate and the SME economy.
But the lender’s strategy extends beyond Nanyuki, with the branch forming part of a wider push to deepen its presence in regional commercial hubs outside Kenya’s major cities.
Laikipia Governor Joshua Irungu said the region’s growing private-sector economy presented significant opportunities for financial institutions and investors.
The bank’s expansion comes against a backdrop of increasing competition for deposits, quality borrowers and corporate customers in Kenya’s financial sector.
For SBM, the stronger financial position provides room to expand its customer base and lending portfolio while investing in a wider physical network and digital banking infrastructure.
The Nanyuki outlet is the bank’s newest branch since it opened its Kilifi outlet in July 2025, taking its nationwide branch network to 34.
The lender said its continued investment in regional markets is intended to improve accessibility while positioning the bank to benefit from economic activity emerging outside Kenya’s traditional commercial centres.
