Absa Bank Kenya is set to invest up to KES 3 billion ($23.2 million) annually in technology as it doubles down on its digital banking strategy, according to a Business Daily report.
The lender says the recurring investment will support its efforts to shift more customer activity away from physical branches and into mobile and self-service platforms, as competition in Kenya’s banking sector intensifies and customer expectations increasingly tilt toward faster, always-on digital services.
“Typically, we now do KES 2 billion ($15.4 million) to KES 3 billion ($23.2 million) of investments per year [in technology], and 2025 was no different in ensuring we are migrating transactions to digital platforms. We are making it easier for our customers to transact with us,” Absa Kenya chief executive Abdi Mohamed said.
The bank spent KES 2.16 billion ($16.7 million) on technology in 2025 alone, highlighting how digital infrastructure is becoming a permanent cost centre rather than a one-off investment. Today, about 94% of all transactions take place outside physical branches, a sharp jump from roughly 40–50% a decade ago.
The shift mirrors a wider transformation across Kenya’s banking industry, driven in part by the dominance of mobile money and rising demand for instant financial services that do not require branch visits.
Absa’s digital pivot is also reshaping its leadership structure. In February, the bank appointed former M-Pesa Africa chief executive Sitoyo Lopokoiyit to lead its personal and private banking division, a move widely seen as aligning retail banking more closely with mobile-first financial behaviour.
Lopokoiyit, who previously helped scale M-Pesa’s footprint across Africa, is expected to bring deep mobile money experience into Absa’s retail and affluent banking operations at a time when traditional banks and fintechs are increasingly converging.
Early signs of the digital shift are already visible in the bank’s performance. Operating expenses fell 21% to KES 7.35 billion ($56.9 million) in the year to December 2025, driven largely by automation and digitisation initiatives.
At the same time, Absa’s cost-to-income ratio improved to 36.5% from 46% a year earlier, reflecting stronger efficiency gains. Net profit rose 10% to KES 22.9 billion ($177.3 million), suggesting that the bank’s digital investments are beginning to translate into improved profitability even as spending remains high.