Commercial banks in Kenya posted a cumulative pre-tax profit of Ksh 73.5 billion in the first quarter of 2025, unchanged from the same period in 2024, marking the first stagnation in earnings since the Covid-19 era and reflecting a challenging economic environment. According to Central Bank of Kenya (CBK) data, the flat performance was largely driven by reduced interest and forex income, increased loan defaults, and a conservative lending approach favouring government securities over private sector credit. With non-performing loans ratio hitting a high of 17.4% (equivalent to Ksh 717.5 billion) banks raised their loan loss provisions while also cutting costs, including staff and rental expenses, amid a shift toward digital operations.