NAIROBI, Kenya- In a move to boost a hybrid banking experience for their customers, Absa Bank is ramping up its physical presence across Kenya.
Despite a sector-wide trend towards reducing brick-and-mortar branches, Absa has announced the launch of its second branch in Eldoret, signaling a renewed focus on customer accessibility and enhanced service delivery.
Absa Bank, which reduced its branch network following the rebranding from Barclays in February 2020, is reversing course with plans to open more branches.
The bank’s CEO, Abdi Mohamed, highlighted the significance of this expansion, stating, “We are happy to open our doors to the people of Eldoret and the larger Rift region with our second branch in Eldoret. This is part of our ongoing commitment to enhancing customer experience and expanding our footprint to serve the underbanked.”
With 85 branches nationwide, the latest addition in Rupa’s Mall, Eldoret, underscores Absa’s strategy to strengthen its presence in key economic hubs.
Eldoret, Kenya’s fifth-largest town, is a critical player in the country’s economy, known for its contributions to large-scale grain farming, dairy, horticulture, and commerce.
According to Statica’s Bank Distribution report for 2022, Nairobi dominates Kenya’s banking landscape with 573 bank branches, nearly 40pc of the total 1,475 branches nationwide.
This contrasts sharply with other major towns like Vihiga, Narok, and Busia, where branch numbers are below 30.
Despite this concentration in Nairobi, the banking sector is poised for growth. Industry experts predict a significant increase in net interest income, expected to reach $5.51 billion (Sh7.09 trillion) by the end of 2024.
Traditional banks are set to dominate this market segment, with a projected market volume of $5.25 billion (Sh6.75 trillion) in the same year.
The future looks promising for banking in Kenya. Statica’s Population Share report for 2024 forecasts a continuous increase in banking accounts by 3.5pc annually between 2024 and 2029.
By 2029, banking account penetration is expected to reach an impressive 99.9pc.
This growth trajectory aligns with the broader move towards financial inclusion, emphasizing the importance of both digital and physical banking solutions.
While digital banking is on the rise, the need for physical branches remains crucial in serving underbanked regions and providing personalized customer service.
