Absa Bank Kenya plans to invest as much as KES 3 billion (US$23.2 million) each year in technology to strengthen its digital strategy, according to a report by Business Daily.
The move comes as the bank looks to shift more of its customers’ activity onto mobile platforms and other self-service channels.
‎‎Even the competition heats up and customer expectations move away from branches, the bank said that the ongoing investment will facilitate transactions and assist its drive into digital banking.
‎‎The shift is indicative of a larger shift in Kenya’s banking industry toward mobile and self-service channels, which has been sped up by the nation’s well-established mobile money ecosystem and growing demands for instantaneous, round-the-clock financial services.
‎‎”We currently invest between KES 2 billion ($15.4 million) and KES 3 billion ($23.2 million) annually in technology, and 2025 was no different in terms of making sure we are moving transactions to digital platforms.” Absa Kenya CEO Abdi Mohamed told Business Daily, “We are making it easier for our customers to transact with us.”
‎‎In 2025, the bank spent KES 2.16 billion ($16.7 million) on technology, demonstrating how rapidly digital investment has turned into a fixed expense in its business operations. According to the lender [Absa], 94% of all transactions in 2025 occurred outside of branches, up from about 40–50% ten years prior.
‎‎The push for technology coincides with Absa’s ongoing efforts to restructure several aspects of its leadership in consumer banking around digital banking. Sitoyo Lopokoiyit, the former CEO of M-Pesa Africa, was appointed by the bank in February to lead its personal and private banking sector. This appointment was generally interpreted as a sign of the bank’s expectations for retail development.
‎‎At a time when the lines between banks and fintechs are getting increasingly hazy, Lopokoiyit, who established his reputation supervising the growth of M-Pesa, is anticipated to provide mobile banking experience to retail and wealthy banking.
‎‎The bank’s cost base already shows the efficiency advantages. In the year ending in December 2025, other operating expenses dropped 21% to KES 7.35 billion ($56.9 million), with management attributing a large portion of the decrease to automation and digitisation. Performance indicators have also been impacted by the technology push.
‎‎Due to reduced expenses and increased revenue creation, Absa’s cost-to-income ratio—a gauge of banking efficiency—improved to 36.5% in 2025 from 46% the previous year.
‎Even while investment spending is still high, net profit increased 10% to KES 22.9 billion ($177.3 million) over that time, indicating that efficiency advantages from digitisation are starting to underpin bottom-line growth.
