Standard Investment Bank Profit Soars 966% to KSh 1 Billion on Strong Fund Growth

Standard Investment Bank has reported a record financial performance for the year ended December 2025, with profit after tax surging by 966 per cent to KSh 1.04 billion, up from KSh 97.5 million a year earlier.

The sharp rise in profitability was driven by strong growth across its flagship Mansa X funds and the newly launched Ziidi Money Market Fund, as the firm capitalised on increased investor appetite and active portfolio positioning in a tighter liquidity environment.

Total income more than tripled to KSh 2.188 billion from KSh 680.2 million in 2024, underlining the scale of expansion in the bank’s core business lines. Financial services revenue, which closely tracks fee income from assets under management, rose by 202.5 per cent to KSh 1.553 billion.

The growth reflects a significant increase in assets under management across the Mansa X platform. Standard Investment Bank charges a 5 per cent management fee on Mansa X assets, meaning the near threefold rise in revenue aligns with the rapid expansion of the fund base during the year.

The bank also benefited from the launch of the Ziidi Money Market Fund in January 2025, a joint initiative with Safaricom and ALA Capital.

The fund has quickly scaled, reporting net assets of KSh 15.48 billion and investment income of KSh 1.005 billion, with profit before distribution to unit holders reaching KSh 784.3 million.

Performance was further supported by gains in other business segments. Brokerage commissions rose by 169.8 per cent to KSh 338 million, while corporate finance income increased more than fivefold to KSh 55.76 million.

Interest income also jumped significantly to KSh 214.4 million, reflecting a larger deployed balance sheet and expanded fund management mandates.

Operating profit climbed to KSh 1.504 billion from KSh 265.1 million, as revenue growth outpaced cost increases. Operating expenses rose by 25.6 per cent to KSh 429.3 million, while finance costs declined by nearly 22 per cent to KSh 27.1 million, further boosting overall profitability.

The bank’s balance sheet strengthened considerably during the period. Total assets more than doubled to KSh 3.025 billion, while shareholders’ funds increased by 91.3 per cent to KSh 2.139 billion. Retained earnings also rose sharply to KSh 1.579 billion.

In addition, excess liquid capital under Capital Markets Authority requirements stood at KSh 934.3 million, nearly three times the previous year’s level, signalling improved capital adequacy and financial resilience.

A notable development on the balance sheet was the emergence of KSh 822.8 million in shares in unquoted securities, a new position not present in the prior year’s accounts and not yet fully detailed.

The strong results were underpinned by robust performance across all four Mansa X sub-funds. The Mansa X Special Fund KES, the largest by volume, closed the year with assets of KSh 107.7 billion and delivered a net return of 20.74 per cent to clients, generating a net surplus of KSh 13.6 billion.

The USD-denominated fund also recorded significant growth, with total assets of approximately KSh 15.27 billion and net surplus to clients rising nearly fourfold.

Shariah-compliant funds under the Mansa X Najah platform also expanded, reflecting growing demand for alternative investment products.

Looking ahead, Standard Investment Bank is positioning itself for further growth, supported by ongoing expansion initiatives. The firm opened a regional office in Mombasa and broke ground on a planned 32-storey headquarters in Westlands, Nairobi, a project valued at KSh 3 billion.

Founder and Managing Director James Wangunyu said the new development reflects the bank’s long-term ambition to strengthen its role in Kenya’s financial sector.

With assets under management exceeding KSh 110 billion and a significantly strengthened capital base, the bank enters 2026 as one of the most well-capitalised indigenous investment firms in the country, signalling continued momentum in Kenya’s evolving investment landscape.

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