Banks turn to satellite cities for growth

Kenyan lenders are again exploring new growth areas in the banking sector, moving away from cities to densely populated villages and urban centres. Absa Bank is the latest entrant.

According to the Central Bank of Kenya (CBK) 2023 annual report, 15 branches were opened in Nairobi, but the growing trend towards emerging and new growth areas was telling.

While Kenya has high levels of financial inclusion through digital channels, rural areas are still underserved by the specialized options offered by a physical bank.

Absa Bank is driving its brand expansion strategy and differentiates itself by delivering innovative solutions tailored to the unique needs of the local market. The bank is actively expanding and has reached 85 branches with the opening of its newest branch in Rupa’s Mall, Eldoret. Customers will have access to transaction accounts, savings accounts, deposit accounts, Shariah-compliant solutions, financial advisory services and more.

“We are pleased to open our doors to the people of Eldoret and the greater Rift region with our second branch in Eldoret. This is part of our ongoing commitment to enhance the customer experience and expand our footprint to serve the underbanked,” said Absa Bank MD & CEO Abdi Mohamed.

Mohamed stressed that the lender’s strategy is to expand banking services to the region’s growing business community and provide its clients with an enhanced customer experience. The bank aims to strengthen Africa’s future together, one story at a time.

Eldoret, Kenya’s fifth largest city, is known for its economic contribution through large-scale cereal cultivation, dairy and horticulture, trade and commerce, an extensive manufacturing sector, a thriving hospitality and tourism sector and a fast-growing micro, small and medium-sized sector.

The growing real estate market offers banks lucrative locations in business centres such as Rupa’s Mall, a sprawling 8.5-hectare development that includes a 100-room hotel, supermarket, restaurants, offices, banks, a cinema, a playground and a water park, in addition to regular shops and boutiques.

This provides the lender with a stable customer base looking for a one-stop-shop for all investment, banking and trading needs of customers in the region, offering a full range of retail, corporate and investment banking and business banking services.

The Rupa’s Mall branch will target the growing consumer and business market in Eldoret and its environs and will offer a range of services including forex exchange, money transfer, bill payment and digital services among others.

With this expansion, the bank aims to accelerate its customer-centric approach by increasing its physical presence through opening additional branches, leveraging digital capabilities and enhancing its agency banking network. This strategy ensures uninterrupted service delivery and encourages financial inclusion.

Also read: Absa Bank Kenya partners with Old Mutual to provide comprehensive insurance solution for SMEs