The Lower Eastern Times Opening The Third Eye
Absa Bank Kenya has unveiled plans to expand its agency network to over 17,000 outlets nationwide within the next two years.
In the initial phase, the bank will grow its agency network from the current 600 locations to more than 3,000, aiming to enhance its service delivery and extend its reach to underserved areas.
This initiative is designed to improve access to crucial financial services for both individuals and businesses in their local communities, allowing them to perform transactions like cash deposits and withdrawals through third-party outlets.
The expansion aligns with Absa’s long-term objectives of growth and financial inclusion and reflects the bank’s new customer-focused brand promise, ‘Your Story Matters’. By partnering with general stores and convenience shops, the bank seeks to better serve underserved areas.
Absa Bank Kenya’s Managing Director and CEO, Abdi Mohamed, highlighted the bank’s dedication to supporting customer growth, innovating, and providing solutions to meet daily financial needs. He emphasized that the agency network is essential for accommodating customers’ diverse preferences, whether they engage digitally or through in-person interactions.
Mohamed noted that this distribution model will enhance business efficiency, support individual and business success, and contribute to economic growth by offering financial services in underserved regions.
The expansion reflects a broader trend toward alternative banking channels, driven by the convenience of agency banking.
According to the Central Bank of Kenya’s Annual Report for 2022/23, as of June 2023, there were 21 commercial banks and three microfinance banks involved in agency banking, with a total of 85,328 and 936 active agents, respectively.
The report also highlighted a significant rise in transactions through agents, with 1.3 billion transactions valued at Kes 10.8 trillion, compared to the previous year’s figures.
