Banks dominate list of most valued brands in Kenya
An array of digital-based services and well as ambitious regional expansion drives among Kenyan banks has paid dividend in 2022 after their brand values gained significantly in the latest assessment by valuation consultancy Brand Finance.
Kenya’s banking sector was the most valuable in the Kenya 25 2023 ranking accounting for seven of the brands included with a combined value of Kes161.6 billion. This was 49 percent of the total brand value in the ranking and was up a total 31 percent year-on-year. “This is a sign that Kenya’s banking brands are very much alive and kicking, despite a challenging economic environment,” David Haigh, CEO Brand Finance said.
Equity bank registered 51 percent growth in value growth to Kes65.2 billion helping it maintain its position as Kenya’s second most valuable brand, and narrowing the gap with Safaricom which kept its pole position. Telco Safaricom saw its brand value surge 14 percent to close the year under focus at Kes87 billion.
The UK brand valuation consultancy valued the Kenya Commercial Bank (KCB) at Kes46.6 billion and Safaricom’s global money transfer service M-PESA at Kes28.3 billion.
For the second year in a row, Equity was been named as the strongest Kenyan brand with an elite AAA+ ranking and 92.4 Brand Strength Index (BSI), a 1.6 point jump from last year’s ranking. KCB received a 90.4 BSI, Safaricom 89.4 BSI, Co-operative Bank 84.6 BSI, Tusker 72.6 BSI and M-PESA 70.7 BSI in the ranking. The same ranking also named Equity the world’s fourth strongest banking brand in its top 500 banking industry ranking.
KCB whose brand value increased by 24 percent to Kes46.6 billion was the only other brand in the ranking to achieve AAA+ status.
The consultancy defines brand value as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. This is the value you would pay if you were to acquire the brand name without touching any of its assets.
With presence in six African countries and a commercial representative office in Ethiopia, Equity bank now covers a population of approximately 438 million people. The lender’s investment in digital technologies has pushed 97 percent of all the Group’s transactions via customer self-service on own devices.
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In 2021, KCB acquired DRC Congo’s Trust Merchant Bank (TMB) in its regional expansion following an earlier acquisition of Banque Populaire du Rwanda (BPR). TMB now holds 13.5 percent of the bank’s total assets.
In the ranking, Co-Operative Bank of Kenya brand value edged up by 40 percent to Kes26.9 billion, attaining the fifth position in the ranking, and was the third of the trio of branks that made the top-five list.
Meanwhile, Crown Paints Kenya is the fastest growing brand, up 70 percent to Kes2.1 billion attributable to regional operations in Uganda, Tanzania and Rwanda, which gave the company new frontiers upon the phasing out of pandemic-induced restrictions in East Africa over the past year.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors andcountries.
Brand Finance is the world’s leading independent brand valuation and strategy consultancy with its headquartered in London, and a presence in more than 20 countries.
Brand valuation helps companies understand the value of their brand and how it contributes to the overall value of the company. This important understanding can inform decision-making related to marketing and branding efforts, as well as provide a benchmark for future performance. It can also be used to help attract investors and secure financing. Additionally, brand valuation can be useful in the event of a merger or acquisition, as it can help determine the value of the brand being acquired.