Absa Bank Kenya MD and CEO Abdi Mohamed presents a gift to Absa Bank Ruaka agent Sammy Njoroge during the launch of Absa Bank agency banking expansion drive.
Absa Bank Kenya PLC has unveiled an ambitious plan to significantly increase its agency services network across the country, aiming to reach 17,000 outlets within the next two years. This expansion initiative is set to enhance accessibility to financial services for both individuals and businesses, particularly in underserved areas.
The first phase of this rollout will see Absa Bank’s agency network grow from the current 600 outlets to over 3,000. This initial phase is designed to broaden the Bank’s presence and improve service delivery at the grassroots level, allowing customers to conduct cash deposits, withdrawals, and other transactions through various third-party outlets such as general shops and convenience stores.
The strategic move aligns with Absa’s commitment to its customer-centric brand promise, ‘Your Story Matters’, and underscores the Bank’s broader financial inclusion goals. By extending its reach through a widespread agency network, Absa aims to bridge service gaps and enhance convenience for both existing and potential customers.
Absa Bank Ruaka agents Sammy Njoroge and James Njoroge guide Absa Bank Kenya MD & CEO Abdi Mohamed through a transaction during the launch of Absa Bank agency banking services expansion drive. The bank is targeting to expand its agency banking network to 17,000 outlets within the next two years.
Abdi Mohamed, Managing Director and CEO of Absa Bank Kenya PLC, highlighted the significance of this expansion. “As a full-service Bank, we cater to customers from all walks of life—whether they interact with us digitally or prefer face-to-face interactions. Our agency network is a critical component of how we serve our customers. We are dedicated to supporting their growth stories and providing solutions that meet their daily financial needs, all while living our purpose of ‘Empowering Africa’s tomorrow together, one story at a time,” said Mohamed.
He further emphasized that the new distribution model would drive business efficiency and contribute to economic growth by providing essential financial services in underserved areas. This expansion reflects a broader trend in banking, where alternative channels like agency banking are increasingly popular among customers for their convenience.
According to the Central Bank of Kenya’s Annual Report for the financial year 2022/23, there were 21 commercial banks and three microfinance banks engaged in agency banking as of June 2023. These banks operated a total of 85,328 active agents, highlighting the growing significance of this model. The report also noted a rise in agency banking transactions, with 1.3 billion transactions recorded compared to 1.1 billion in the previous year. The value of these transactions increased from Kes 9.0 trillion to Kes 10.8 trillion, illustrating the model’s growing acceptance and usage across the country.
Absa’s significant investment in expanding its agency services network represents a strategic effort to align with evolving customer preferences and bolster financial inclusion in Kenya. The Bank’s initiative is poised to make a substantial impact on accessibility and convenience for banking customers nationwide.