Kenya’s largest banks are entering a new phase of competition, one where growth is no longer driven by bringing customers online but by generating more revenue from those already there.
I&M Group’s latest disclosures show just how far the digital shift has gone. The lender says 98% of its customers now transact through digital channels, a figure that signals the industry may have largely exhausted the pool of new digital users.
With more than 727,000 customers across five markets and assets of KES 668.9 billion ($5.2 billion), I&M’s numbers offer a clear read on the wider market, particularly among top-tier lenders.
For years, banks focused on moving customers away from physical branches and onto mobile apps, web platforms, and USSD channels. The payoff was clear: lower operating costs and broader reach. Today, most routine transactions from transfers to bill payments and balance checks happen digitally, reducing foot traffic and staffing needs across the sector.
That transition is now largely complete.
Top lenders, including KCB Group, Equity Group Holdings, and Co-operative Bank of Kenya, report that more than 90% of transactions take place outside branches. Few, however, have reached I&M’s 98% mark. Equity says over 95% of its transactions are now digital, with KCB reporting similar levels across its platforms.
“The Group’s strong performance is a clear testament to the growing strength, resilience and synergy of our operations across all our markets,” said CEO Kihara Maina when the bank released its full-year 2025 results.
But the success of digital banking has created a new challenge. With most customers already online, banks must now find ways to earn more from each user. While transaction volumes continue to grow, margins per transaction are shrinking as competition intensifies and pricing becomes more transparent.
I&M’s latest results point to where the industry is heading.
The bank’s non-interest income rose 31% to KES 14.4 billion ($111 million), outpacing overall revenue growth. At the same time, assets under management surged 223% to KES 99 billion ($764 million), driven by a push into wealth products targeted at existing customers.
These income streams rather than transaction volumes are increasingly defining performance in a market where digital access is no longer a differentiator.
I&M is also doubling down on foreign exchange and cross-border services. It has expanded its FX Direct platform and upgraded online trading channels to capture more activity layered on top of its digital infrastructure.
Rivals are taking similar steps. Equity is deepening its push into investment and insurance products, while KCB is expanding merchant payments following its acquisition of Riverbank Solutions, alongside its digital lending offerings.
Across the board, banks are turning their apps into full-service financial marketplaces bundling payments, lending, savings, and insurance into a single ecosystem.
What is emerging is a shift in strategy: from acquiring users to capturing a greater share of their financial lives.
As digital adoption approaches its limit, future growth will depend less on onboarding new customers and more on how effectively banks can monetise the ones they already have without pushing them toward cheaper or competing alternatives.