What was once promoted as one of Kenya’s biggest banking success stories is increasingly facing difficult questions from customers, regulators, investors and even market trends. NCBA Bank, which is associated with the Kenyatta family and emerged from the merger of Commercial Bank of Africa and NIC Group in 2019, remains profitable on paper.
However, a closer look at its recent performance reveals growing concerns that are becoming harder to ignore.
For years, NCBA built its reputation around vehicle financing, digital lending and a large customer base spread across the region.
The bank became a major force in Kenya’s financial sector and positioned itself as a serious competitor to the country’s largest lenders.
Yet recent developments suggest that the institution is facing challenges that go beyond ordinary business competition.
One of the biggest warning signs has been the bank’s declining position against its rivals. Financial reports showed that I&M Group overtook NCBA in total assets during 2026, a significant milestone considering NCBA had previously maintained a comfortable lead.
Even more concerning is the shrinking gap in loan book size.
A lead that once stood at tens of billions of shillings has almost disappeared within a few years, raising questions about whether NCBA is losing its competitive edge.
Although NCBA continues to report billions of shillings in profits, the pace of growth has not matched some of its competitors.
While profits have increased, rivals have expanded faster, narrowing the gap and placing additional pressure on the bank’s leadership.
Customer deposits also declined during parts of 2025, a development that often attracts attention because deposits are a key measure of customer confidence in a financial institution.
Beyond the financial figures, the bank has found itself linked to several cases involving internal fraud. One of the most publicized involved an employee accused of stealing more than Sh52 million from customer accounts.
The allegations became even more troubling after claims emerged that transactions continued even after the employee had reportedly been suspended.
Such claims naturally raise concerns about internal controls and how quickly access to sensitive systems is restricted when staff members leave or face disciplinary action.
Additional cases involving dormant accounts, Fuliza-related fraud and alleged abuse of system access by contractors have further increased scrutiny.
While the bank has maintained that these incidents involved individuals acting unlawfully rather than failures across the entire institution, customers are justified in asking whether stronger safeguards could have detected the suspicious activities sooner.
The concerns do not stop at fraud. NCBA has also faced criticism over the handling of customer information.
Decisions by the Office of the Data Protection Commissioner found the bank liable in separate cases involving the disclosure of customer data to unauthorized parties.
In one case, personal information was allegedly shared with third parties, while another involved transaction details being repeatedly sent to the wrong email address despite attempts to alert the bank.
For many customers, trust is the foundation of banking. People expect their money, personal information and financial records to be protected.
When fraud cases and data protection rulings emerge repeatedly, they can damage confidence even when the financial institution remains profitable.
The bank’s asset financing business, particularly vehicle loans, has also attracted complaints from some borrowers over the years.
Asset finance has long been one of NCBA’s strongest products, but customer disputes involving repossessions and loan terms have occasionally generated negative publicity.
While such disputes are not unique to NCBA, they contribute to a growing list of issues facing the institution.
Adding to the uncertainty is the planned acquisition that will see South Africa’s Nedbank take control of the bank. For some observers, the move represents a strategic business decision.
For others, it raises questions about why founding shareholders would be willing to surrender control of a bank that was once presented as a flagship Kenyan financial institution.
NCBA remains a major player in the banking sector and continues to generate substantial profits. However, declining market leadership, customer complaints, internal fraud cases, data protection concerns and the transition to foreign control have combined to create a challenging period for the lender.
The coming years may determine whether the bank can restore confidence and reclaim its position or whether the warning signs visible today mark the beginning of a much deeper decline.
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