The lender, which is controlled by Standard Chartered Plc, said its operating income fell by 5% as net interest income and income from services weakened. Costs went up by a percentage point.

The bank is concerned by a resurgence of infections in the East African nation, which is going through a deadly third wave, Chief Executive Officer Kariuki Ngare told an investor briefing.

The company's earnings per share dropped 35% to 13.95 shillings, but it still set a dividend of 10.50 shillings ($0.0957) per share citing that its capital reserves were adequate.

($1 = 109.7000 Kenyan shillings)

(Reporting by Duncan Miriri; Editing by Tom Hogue and Sherry Jacob-Phillips)