Absa Kenya Scales Up Technology Investment as Mobile Banking Gains Ground
As more customers move to mobile and online banking, Absa Kenya is directing billions into technology to support the shift
Absa Bank Kenya has set aside between Sh2 billion and Sh3 billion annually for technology, tying its investment plans to a steady rise in customer activity on mobile and online platforms.
The lender says most transactions now take place away from its physical network, a pattern that has hardened over recent years and is shaping how it allocates capital. Chief executive Abdi Mohamed said the bank has maintained that level of spending through 2025 as it expands systems that allow customers to transact without visiting a branch.
“Typically, we now do Sh2 billion to Sh3 billion of investments per year in technology,” he said.
Customer behaviour pushes transactions beyond branches
Internal data shows the scale of the transition. In 2025, about 94 percent of customer transactions were completed outside branches, a marked rise from levels that hovered between 40 percent and 50 percent several years earlier.
That trajectory mirrors wider changes across the sector. Data from the Kenya Bankers Association indicates that self-service channels such as mobile apps and internet banking accounted for 56.49 percent of customer preference in 2024, up from 45.7 percent a year earlier.
Banks are responding by expanding digital access points and reducing reliance on in-branch processing for routine services.
Automation feeds into lower operating costs
At Absa, the technology push is beginning to show up in cost metrics. The bank reported a decline in operating expenses, with other costs falling 21 percent to Sh7.35 billion in the year ended December 2025.
Chief finance officer Omari Yusuf linked the reduction to automation and process redesign, including the use of robotics in back-office functions. The changes have also allowed the bank to move staff into advisory and customer-facing roles.
The cost-to-income ratio improved to 36.5 percent from 46 percent over the same period, reflecting both tighter cost control and revenue growth.
Digital backbone supports expansion into new revenue lines
Beyond efficiency, the lender is using its technology base to support newer business segments. Units such as bancassurance, asset management, custody services, and securities trading generated Sh4.3 billion in income last year, a 17 percent increase.
Absa is targeting a larger contribution from these lines over time, with a goal of at least 10 percent of total revenue.
The approach places technology at the centre of both cost management and revenue diversification, as Kenyan banks adjust to customers who increasingly expect to transact, invest, and access services without stepping into a branch.
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