Absa Bank Kenya has disclosed plans to spend between KES 2 billion ($15.4 million) and KES 3 billion ($23.2 million) annually on technology, reinforcing its digital strategy as customer activity increasingly shifts to mobile and self-service channels. The recurring investment, according to Chief Executive Abdi Mohamed, is aimed at making transactions easier and accelerating the migration of services to digital platforms.
The move reflects a broader transformation across Kenya’s banking sector, where entrenched mobile money adoption and rising expectations for instant financial services are reshaping customer behaviour.
The lender spent KES 2.16 billion ($16.7 million) on technology in 2025, underscoring how digital investment has become a fixed cost in its operations. About 94 percent of all transactions last year occurred outside branches, compared with just 40–50 percent a decade ago. This rapid migration highlights the scale of change in Kenya’s financial landscape, where mobile and self-service channels are now the dominant mode of interaction. Absa’s strategy aligns with industry trends that prioritise convenience, speed, and reliability over traditional branch-based banking.
The bank has also reshaped its leadership to reflect its digital ambitions. In February, Absa appointed former M-Pesa Africa chief executive Sitoyo Lopokoiyit to head its personal and private banking division. Widely regarded as a signal of where retail growth will come from, Lopokoiyit’s appointment brings deep expertise in mobile banking at a time when the lines between banks and fintechs are increasingly blurred. His experience in scaling M-Pesa is expected to strengthen Absa’s push into mobile-led retail and affluent banking.
Efficiency gains from digitisation are already evident in the bank’s performance. Operating expenses fell 21 percent to KES 7.35 billion ($56.9 million) in 2025, with management attributing much of the decline to automation and digital processes. The cost-to-income ratio improved to 36.5 percent from 46 percent a year earlier, while net profit rose 10 percent to KES 22.9 billion ($177.3 million). These figures suggest that Absa’s sustained investment in technology is not only transforming customer experience but also delivering measurable benefits to its bottom line.