INTEGRATED REPORT & FINANCIAL STATEMENTS

1 INTEGRATED REPORT & FINANCIAL STATEMENTSA bout this reportThe KCB Group Plc INTEGRATED REPORT and FINANCIAL Statement 2020 is our statutory and regulatory reporting disclosure. It comprises information about activities, strategy, approach to operating responsibly, FINANCIAL , and non- FINANCIAL results for the period of January 1, 2020 to December 31, 2020. The aim is to comprehensively REPORT to our existing and prospective investors in an INTEGRATED way to reflect how the organisation operates. FrameworkThe REPORT has been prepared in compliance with global best practice and prudent accounting frameworks.

2 It is aligned to the provisions of the Companies Act, 2015, Capital Markets Authority (CMA) guidelines, the Nairobi Securities Exchange (NSE) Listings Manual, and Central Bank of Kenya (CBK) Prudential Guidelines. This REPORT is also in compliance with the International INTEGRATED Reporting Council (IIRC) guidelines. The Group s Annual FINANCIAL STATEMENTS were prepared in accordance with the International FINANCIAL Reporting Standards (IFRS). The REPORT is part of our commitment to be transparent and accountable to our Group constantly considers whether there are additional reporting frameworks or metrics we could use to enhance our Annual FINANCIAL STATEMENTS for the Group, KCB Bank Kenya, National Bank of Kenya, KCB Bank Tanzania and KCB Bank South Sudan were audited by PricewaterhouseCoopers.

3 KCB Bank Burundi and KCB Bank Rwanda were audited by KPMG, while KCB Bank Uganda was audited by REPORT & FINANCIAL STATEMENTSC ontentsOverviewOverview ..4 Group Perfomance Highlights ..5 Digital Channel performance ..6 Our 2020 Milestones ..82020 - 2023 Strategy ..10 Our Value Creation Process ..12 Our Capitals ..14 COVID-19 Related Initiatives ..18 Operating Environment ..20 Reinforcing Our Market Capabilities ..27 Who Governs UsGroup Chairman s Statement ..28 Taarifa ya Mwenyekiti ..30 Group Board of Directors.

4 32 Group CEO & MD s letter to Shareholders ..34 Barua ya Afisa Mkuu Mtendaji wa Kundi na Mkurugenzi Mkuu ..38 Executive Committee ..42 REPORT from the Group CFO ..44 Value Added Year Review ..47A Review of Our Strategic Themes ..48 Our Sustainability Agenda ..56 KCB Foundation ..58 Corporate Governance Statement ..62 Shareholding ..83 Board of Directors Profiles ..84 FINANCIAL STATEMENTS & Notes ..88To ensure that we REPORT on issues that matter to our stakeholders please provide any feedback and questions to: or visit strongly recommends adherence to COVID-19 safety laid out Government regulations and health precautions were adhered to during the making of this REPORT & FINANCIAL STATEMENTSKCB Group is East Africa s largest FINANCIAL solutions provider with operations in Kenya, Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia (representative office).

5 The Group was established in 1896 and is headquartered in Nairobi, Kenya. For over a century, the Group has been a catalyst for development, enabling growth and economic progress, supporting regional trade, and connecting millions of people across the world to opportunities on the African continent and beyond, whilst making positive social impact in the communities. KCB Group Plc is a registered non-operating holding company that oversees KCB Bank Kenya and all the regional subsidiaries.

6 It also owns National Bank of Kenya (NBK) acquired in 2019 KCB Insurance Agency, KCB Capital, KCB Foundation and other associate companies. At the time of publishing this REPORT , the Group was in the process of acquiring additional banking , the Group has the largest branch network in the region with 359 branches, 1,104 ATMs, 23,460 point of sale (PoS)/merchants and agents offering banking services on a 24/7 basis. This is complemented by mobile banking and internet banking OverviewOur Regional PresenceTotal Equity1,104 ATMs | 23,460 Agents & POS / Merchants7,525 ,424,283,000359 Bank RwandaKCB Bank UgandaKCB Bank BurundiKCB Bank KenyaNational Bank of KenyaKCB Insurance AgencyKCB FoundationKCB CapitalEthiopia (Representative Office)KCB Bank South Sudanservices with a 24-hour contact center for our million customers.

7 The Group also has a wide network of correspondent relationships of over 200 banks across the world, thereby assuring our customers of a seamless facilitation of their international trade requirements wherever they Group shares are quoted at the Nairobi Securities Exchange (NSE), Dar-es-Salaam Stock Exchange (DSE), Uganda Securities Exchange (USE), and Rwanda Stock Exchange (RSE). Our focus remains on areas where we believe we can make a significant difference in fulfilling customers ambitions and driving FINANCIAL inclusion while supporting businesses to grow.

8 We provide a broad range of FINANCIAL products and services in retail banking , corporate banking , investment banking and insurance. The Bank also offers digital FINANCIAL services and Shariah-compliant has over the years continually invested in deepening its sustainability agenda that is anchored on building a responsible business for the future with special focus on environmental, social, FINANCIAL and economic Bank Tanzania5 INTEGRATED REPORT & FINANCIAL STATEMENTSOVERVIEWP rofit Before Income Tax (KShs.)

9 Million)Return on Average EquityReduction in Greenhouse Gas emissionsFemale/Male RatioDividends(KShs. Million)Net Loans and Advances (KShs. Million)Cost to Income RatioReams of paper usedNumber of staff health and safety incidences (in the work place)Total debt / Total equityNon Performing Loans (KShs. Million)Water useElectricity Consumption at Kencom Head Office(Million Kw\h)Market Capitalization (KShs. Million)Customer Deposits(KShs. Million)202025, :5520203,2132020836,9682020595, , ,6132020147M ,4332020767,2242020 20,511201936, :56201911,0992019980,4432019539, , ,2012019142M ,5272019686,583201919,459 Net Promoter ScoreCustomer ComplaintsTotal Employee Benefits (KShs.

10 M)202052 FinancialNon-FinancialGroup performance Highlights6 INTEGRATED REPORT & FINANCIAL Channel PerformanceTotal Mobile TransactionsMonth-on-Month Evolution of Customer to Business TransactionsNon-Branch Transactions88%97%98%201820192020 OVERVIEWKShs. Trillion facilitated by KCB via mobile in 2020 underpinning the continued growth in preference for the channel for transactions during the COVID-19 (KShs.)NumberValue (KShs.)NumberKEYKEYV olumes of customer to business transactions grew fourfold YoY driven by the shift to digital transactions and fee waivers during the of non-branch transactions surged by 55% to KShs.