Absa Bank Kenya PLC will significantly expand its reach across the country by establishing over 17,000 agency service outlets within the next two years.
The first phase of this rollout will see the Bank rapidly increase its agency network from the current 600 to over 3,000, focusing on broadening its presence and enhancing service delivery to underserved communities.
This expansion aims to improve accessibility to essential financial services for individuals and businesses in their local areas. Both existing and non-customers will benefit from the convenience of conducting cash deposits, withdrawals, and other transactions through third-party outlets.
This strategic move aligns with the Bank’s long-term growth and financial inclusion objectives. It also complements Absa’s new customer-centric brand promise, ‘Your Story Matters,’ and seeks to bridge the gap for underserved communities by leveraging a third-party network that includes general shops and convenience stores.
Abdi Mohamed, Managing Director and CEO of Absa Bank Kenya PLC emphasized the Bank’s commitment to supporting customers’ growth, innovation, and access to solutions that meet their daily financial needs while living its purpose of ‘Empowering Africa’s tomorrow together, one story at a time.’
“As a full-service Bank, we cater to customers from all walks of life,” Mr. Mohamed said. “Our agency network is a crucial component of how we serve our customers, and we are committed to expanding it. Our footprint will continue to grow over time, and we are focused on making banking accessible to everyone.”
Mr. Mohamed added that this distribution model will not only drive efficiency in the Bank’s business but also contribute to the growth of the Kenyan economy by facilitating essential financial services in underserved areas.
This service expansion aligns with customers’ increasing preference for alternative banking channels, driven by the convenience offered by the agency model.
According to the Central Bank of Kenya’s annual bank supervision report for FY’2023, there were 21 commercial banks and three microfinance banks engaged in agency banking, with a total of 85,328 and 936 active agents, respectively.
The report also highlighted a substantial increase in banking transactions through agents, with 1.3 billion transactions compared to 1.1 billion in June 2022.
During the same period, the value of agency banking transactions increased from KES 9.0 trillion to KES 10.8 trillion, indicating the growing popularity of agency banking services in Kenya.
