Kenya, May 15 -- Sidian Bank, a medium-sized bank focused on helping small and medium businesses, has shared exciting news! In the first quarter of 2025, the bank made a net profit of KSh 557 million. This is a big increase of 250% compared to KSh 159.1 million during the same time last year.

This great news was shared on May 15, 2025. Many people are noticing the bank's growth, especially because it manages funds for the Social Health Insurance Fund (SHIF) and the Social Health Authority (SHA).

There are also rumors about the bank being linked to Kenya's First Family, but these claims are not confirmed.

According to a report from Bizna Kenya, Sidian Bank's profit was boosted by a 61.9% increase in customer deposits, which went up to KSh 50.2 billion from KSh 31 billion last year.

The bank's total assets also grew by 48.3% to KSh 68.1 billion. Furthermore, the bank earned a lot more money from services other than loans, rising 121.3% to KSh 1 billion. This increase was supported by the bank's digital banking services and trade finance products.

The bank's core capital, which shows its financial strength, also grew, reaching KSh 6.1 billion from KSh 4.7 billion.

Sidian Bank's focus on helping small businesses and its innovative mobile apps, like the sidianVibe banking app and the Sidian Credible online platform, have helped increase its business and income from services.

"Our strong results show our commitment to support entrepreneurs and use technology to give them the best financial solutions," said CEO Chege Thumbi in a statement with the results.

One of the reasons for Sidian Bank's growth is its role in managing funds for the Social Health Insurance Fund (SHIF) and the Social Health Authority (SHA), which is Kenya's new healthcare financing program.

This role has improved the bank's cash flow, allowing it to lend more and invest in government securities.

The SHIF/SHA program, intended to replace the National Health Insurance Fund (NHIF), has been widely discussed. Some people are questioning why funds are given to private banks like Sidian Bank.

The bank's ability to handle these funds has made it an important player in Kenya's healthcare financing, but it has also led to speculation about its connections to politics.

There are ongoing rumors that Sidian Bank is owned by Kenya's First Family because of the bank's connections to important political figures.

"Now we understand why SHIF money goes into the SHA account at Sidian Bank," said some sources, suggesting that politics might influence the bank's actions.

Official records show that the biggest shareholder of Sidian Bank is Bakki Holdco Limited, which is part of Centum Investment Company. They own 40.03% of the bank after buying shares in 2023 and 2024.

Other main shareholders include Pioneer General Insurance Limited (24.8%), Wizpro Enterprises Limited (18.27%), and Afrah Limited (7.91%).

The bank's ownership changed quite a bit in 2024 when its founders and individual shareholders, including K-Rep Group Limited, sold their 16.57% stake for KSh 841.66 million to other investors.

Sidian Bank's strong profit rise of 250% in Q1 2025 to KSh 557 million-driven by a 61.9% increase in deposits and a 121.3% rise in income from services-seems exceptional. It looks like no other Kenyan bank is close to this achievement.

For comparison, Stanbic Bank reported a profit drop of 16.6% to KSh 3.33 billion. KCB Group had a profit growth of 66.1% for the full year of 2024, but we don't yet have their Q1 2025 results.

KCB is also partly owned by the government. Without more data from Q1 2025, Sidian Bank looks very unique.

Published by HT Digital Content Services with permission from Bana Kenya.