Absa Bank Kenya has automated more than 70% of its operations after investing KES 4 billion ($31 million) in technology, as digital channels continue to replace traditional banking across the country.
According to the bank’s latest sustainability report, 71% of its processes were automated in 2025, while 94% of customer transactions were completed through digital and alternative channels. The figures highlight how Kenya’s banking sector is relying on automation, cloud computing and artificial intelligence to improve efficiency and reduce operating costs as fewer customers visit physical branches.
The shift is not unique to Absa. I&M Bank reported that 98% of its transactions were processed digitally in 2025, while Equity Bank, KCB Group and Co-operative Bank have each said more than 90% of customer transactions now take place outside their branch networks.
As customer behaviour changes, banks are redirecting technology budgets beyond mobile and internet banking into cloud infrastructure, cybersecurity, artificial intelligence and data management systems that can support increasingly digital operations.
Absa said its KES 4 billion technology investment was used to modernise its cloud infrastructure, expand robotic process automation, deploy machine learning capabilities and strengthen network infrastructure. The upgrades support digital banking services, fraud detection and internal business operations.
The investment has also translated into lower operating costs. Absa said automation and process optimisation helped keep its cost-to-income ratio at 37%, reflecting improved operational efficiency despite modest growth in its core banking business.
The lender is not slowing its technology ambitions. Former Chief Executive Officer Abdi Mohamed said in April that the bank plans to invest between KES 2 billion ($15.5 million) and KES 3 billion ($23.3 million) in technology every year to sustain its digital transformation programme.
The strategy appears to be paying off financially. Profit after tax rose 10% to KES 22.9 billion ($178 million) in 2025, even as customer deposits and loan growth each increased by just 1%. Meanwhile, operating expenses declined 21% to KES 7.35 billion ($57 million), helping the bank improve its cost-to-income ratio to 36.5%, down from 46% the previous year.
Despite the growing use of automation, Absa has not linked its technology investments to job cuts. Its permanent workforce increased slightly by 43 employees to 2,210 during 2025, while staff turnover fell to 6.2% from 7.7%.
However, the bank introduced a voluntary separation programme shortly after the reporting period, with 82 employees exiting at a cost of KES 717 million ($5.6 million). Those departures were not reflected in the 2025 employee count.
Absa also disclosed that it engaged 3,345 non-permanent workers around 51% more than its full-time workforce including outsourced security and facilities staff, contractors, consultants, technology vendors, interns and trainees. The bank did not provide a breakdown of spending on those workers or how they were distributed across the different categories.
Even as banking becomes increasingly digital, Absa continues to maintain an extensive physical footprint, operating 91 branches and service centres alongside 204 ATMs serving more than 1.2 million customers. But with the overwhelming majority of transactions now taking place online, branches are gradually shifting from transaction centres to advisory and customer support hubs.
