Kenya: Absa launches its second branch in Eldoret

Absa Bank has expanded its branch network in major towns, despite the banking sector’s current trend of reducing physical branches in favor of digital services.

Following a reduction in its branch numbers across the country after rebranding from Barclays in February 2020, the bank now aims to increase its physical presence, beginning with the opening of a second branch in Eldoret.

“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 operates 85 branches nationwide, with the newest addition located in Rupa’s Mall, Eldoret.

Eldoret, the fifth-largest town in Kenya, is a hub of economic activity, renowned for its large-scale grain farming, dairy and horticultural industries, as well as trade and commerce.

The 2022 Statica Bank Distribution report shows that Nairobi leads with 573 bank branches, accounting for nearly 40 percent of the country’s total of 1,475 branches.

In contrast, smaller towns such as Vihiga, Narok, and Busia have fewer than 30 bank branches each.

However, industry experts predict that the banking market will experience notable growth in net interest income, which is expected to reach $5.51 billion (Sh7.09 trillion) by the end of 2024.

Traditional banks are anticipated to lead this market segment, with a projected market volume of $5.25 billion (Sh6.75 trillion) in the same year.

Moreover, Statica’s Population Share report for 2024 forecasts a steady 3.5 percent annual increase in bank accounts in Kenya from 2024 to 2029.