I and M Group has overtaken NCBA Group in total assets, signalling a shift in Kenya’s banking pecking order driven by the former’s aggressive push into retail banking.
Latest disclosures show I and M’s balance sheet stood at Sh742.5 billion as at March 2026, marginally edging out NCBA’s Sh741.1 billion to become the fourth-largest lender by asset base after KCB Group (Sh2.254 trillion), Equity Group (Sh2.036 trillion) and Co-operative Bank of Kenya (Sh884.57 billion).
The crossover marks a milestone for I and M, which has historically trailed larger tier-one lenders but has in recent years ramped up its expansion in Kenya’s mass market segment. The lender has grown its assets mainly through expansion of its loan book, steadily narrowing the gap with the industry’s top players.
NCBA, which was formed through the merger of Commercial Bank Africa and NIC Bank in September 2019, had expanded its asset lead over I and M to Sh183.06 billion by the end of December 2022.
However, I and M started narrowing the gap the following year, reducing it to below Sh100 billion by December 2024 before eventually overtaking NCBA in the quarter ended March 2026.
I and M’s growth has been supported by a strategy to diversify away from its traditional corporate banking base and aggressively target small and medium-sized enterprises (SMEs) and retail customers through branch expansion and digital channels.
‘In addition to the group’s established presence in the corporate and institutional banking segment, it has now developed a respected standing in serving small and medium-sized enterprises, many of which have experienced significant growth alongside the group,’ said the lender.
I and M has also been narrowing the profitability gap with NCBA, reducing it from Sh8.1 billion in 2023 to Sh5.92 billion in 2024 and Sh3.55 billion last year. In 2025, I and M’s net profit grew 24.4 percent to Sh19.83 billion, while NCBA’s rose 6.9 percent to Sh23.39 billion.
Valuation edge
NCBA, however, continues to trade at a higher premium, with a market capitalisation of Sh144.9 billion compared with I and M’s Sh93 billion.
NCBA’s larger valuation is linked to its relatively stronger efficiency metrics, including return on equity, as well as the recent rally in its stock following Nedbank’s offer to acquire a 66 percent stake in the bank at a premium of up to Sh105 per share.
I and M’s pivot to retail banking, supported by its three-year strategy dubbed iMara 3.0, which runs until the end of this year, has driven steady growth in customer deposits and loan uptake, boosting its overall asset base.
In contrast, NCBA has maintained a strong footing in corporate and digital lending, including its flagship mobile loan products. However, its asset growth has been relatively slower in recent quarters, allowing I and M to close the gap and eventually surpass it.
Data shows that while NCBA still held a slightly larger loan book of Sh324.4 billion compared with I and M’s Sh322.9 billion as at March 31, 2026, the balance has tilted in favour of I and M in total assets, reflecting growth in other balance sheet components such as investments.
I and M has also been closing the gap in its loan book, with the difference narrowing from Sh40.33 billion in December 2022 as lending expanded.
The lender’s loan book overtook NCBA’s between the first and third quarters of 2025 before NCBA regained the lead, holding a marginal Sh1.47 billion advantage by the end of March this year.
The Nairobi Securities Exchange-listed bank has continued to aggressively expand its retail banking business through new branches and additional staff.
I and M added 12 new branches last year, bringing its network to 119 outlets and strengthening its footprint across regional markets. Ten of the new branches were opened in Kenya, which accounts for more than 70 percent of the group’s assets.
Scale race
The development highlights rising competition among Kenya’s top lenders as mid-tier banks increasingly challenge incumbents through niche strategies and innovation.
I and M’s rise mirrors a broader industry trend in which banks are recalibrating their business models to capture retail and SME segments that offer higher margins and diversification benefits.
Across the sector, lenders have been expanding digital offerings and agency banking networks to deepen customer reach.
The race for scale is expected to intensify further as banks prepare for higher minimum capital requirements in the coming years, a move that could trigger mergers, acquisitions or fresh capital injections.
Banks are required to raise minimum core capital to Sh5 billion by the end of this year, increase it to Sh6 billion by the end of next year, reach Sh8 billion in 2028 and further raise it to Sh10 billion by the end of 2029.
Larger balance sheets are viewed as critical for absorbing shocks, funding big-ticket loans and remaining competitive.