Absa Bank has embarked on a branch expansion in major towns a ta time when the banking sector is cutting on physical branches in favour of digital.
The lender, which cut its branch numbers across the country after dropping the Barclays brand in February of 2020, plans increase its physical footprint starting with the launch of its second Eldoret branch.
“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 under banked,” said the bank's CEO Abdi Mohamed.
Absa currently has 85 branches countrywide the latest being in Rupa’s Mall, Eldoret.
Eldoret, Kenya’s fifth-largest town, is known for its economic contribution through large-scale grain farming, dairy and horticultural farming as well as trade and commerce.
According to Statica’s Bank Distribution report for 2022, Nairobi had the highest number of bank branches at 573 bank branches, nearly 40 per cent of the total (1,475).
In contrast, the number of branches in major towns like Vihiga, Narok and Busia, were below 30.
However, industry experts say the banking market is expected to witness a significant growth in net interest Income, which is projected to reach $5.51billion(Sh7.09 trillion) by end of 2024.
Traditional Banks are set to dominate this market segment, with a projected market volume of $5.25bn(Sh6.75) in the same year.
Additionally, Statica’s Population Share report for 2024 shows banking accounts in Kenya are forecast to continuously increase by 3.5 per cent between 2024 and 2029.
The banking account penetration is estimated to amount to 99.9 percent in 2029.