SBM Bank Kenya Limited posted a profit before tax of KES 412M for the nine months ended September 30, 2025, rebounding from a KES 1.3B loss in the same period last year. Total assets rose to KES 104B from KES 97.5B, while customer deposits increased 20% to KES 75.2B.
Operating income grew to KES 4.3B, up from KES 4.2B, while total operating expenses fell 3.5%, reflecting tighter cost management. Net interest income surged 95.5% to KES 2.8B, supported by loans and advances of KES 45.8B (+4.1%). Non-interest income rose 29.9% to KES 1.5B.
Proposed Local Content Bill Could Require Foreign Firms to Source Majority Locally
The Local Content Bill, 2025, currently before Parliament, seeks to establish a legal framework for regulating local content in Kenya. Under the Bill, foreign companies operating in the country would be required to source at least 60 percent of their goods and services from local companies that meet prescribed standards. Firms that rely on agricultural inputs would be required to procure these exclusively from Kenyan farmers. In addition, the legislation mandates that at least 80 percent of the workforce, including management positions, be composed of Kenyan citizens.
The Bill applies to a range of sectors, including financial services, insurance, construction, transport, logistics, warehousing, and security. The Cabinet Secretary responsible for trade is empowered to expand the list of sectors and define standards for goods and services, as well as other local content requirements. Companies that fail to comply would face significant penalties, including fines of no less than KES 100 million for corporate bodies and potential imprisonment of at least one year for chief executives.
Existing contracts between foreign firms and local suppliers prior to the coming into force of the Act would remain valid until their expiration. The Act is scheduled to take effect one year after its publication in the Gazette. The Bill also provides for regulatory oversight, allowing the Cabinet Secretary to issue regulations to clarify implementation details, prescribe standards for local goods and services, and define additional sectors subject to local content requirements.