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In a bid to bolster its reach and accessibility, the Co-operative Bank of Kenya has announced plans to inaugurate 15 new branches across the nation in 2024.
Despite the burgeoning popularity of digital banking services, the bank remains steadfast in its commitment to extending physical outlets, aiming to bridge the gap between customers and financial services.
William Ndumia, the director of retail and business banking, emphasized the strategic significance of this expansion, stating, “When we look at our mission and vision, we want to be dominant in this market and there are some areas where we have not gone into.
There are even counties where we do not have a presence.” The decision to open new branches reflects the bank’s ambition to capitalize on burgeoning opportunities for growth, particularly in regions previously underserved.
With operations already established in South Sudan, Co-op Bank is intensifying its local expansion efforts to tap into untapped markets.
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The planned addition of 15 branches follows the opening of eight branches last year and five in 2022, underscoring the bank’s proactive approach in keeping pace with industry trends.
Despite a growing preference for digital banking services, as highlighted by a recent survey conducted by the Kenya Bankers Association (KBA), which revealed that 45.7 percent of customers favor fully-automated platforms, Co-op Bank remains committed to addressing the demand for physical presence, especially in emerging satellite and rural towns.
Mr. Ndumia cited the example of Ugunja town in Siaya County, where Co-op Bank recently inaugurated a branch, and further outlined plans to establish a presence in Luanda town in Vihiga County, thereby intensifying competition with other banking giants such as Equity and KCB.
The expansion initiative coincides with the signing of a new asset financing deal with Isuzu East Africa, aimed at facilitating schools and businesses in acquiring buses and commercial vehicles.
Under the scheme, schools will benefit from 100 percent financing, while businesses can access up to 95 percent financing, with a 60-day gr period for commeditionally, schools will enjoy a one-term moratorium on repayments, with repayment terms extended to 72 months, totaling 18 terms, at zero processing fees.
