Absa Bank Kenya to Expand Agency Network to 3,000 Outlets

Absa Bank Kenya has unveiled an ambitious plan to enable access to banking services in underserved areas, particularly rural Kenya. The bank yesterdat announced a dramatic expansion of its agency network from 600 to over 3,000 outlets within the next two years.

This expansion, aimed at enhancing financial inclusion, will be implemented in two phases. The first phase will see an immediate increase to over 3,000 agencies, focusing on broadening the bank’s presence and improving service delivery to the last mile.

Abdi Mohamed, Managing Director and CEO of Absa Bank Kenya PLC, highlighted the significance of this move: “As a full-service Bank, we cater to customers from all walks of life. Our agency network is a critical piece of how we serve our customers, and we are keen on expanding it.”

The expanded network will allow both existing customers and non-customers to conduct various financial transactions, including cash deposits and withdrawals, through third-party outlets such as general shops and convenience stores. This initiative aligns with Absa’s new customer-centric brand promise, “Your Story Matters,” reflecting the bank’s commitment to supporting customer growth and meeting their daily financial needs.

Mohamed expressed confidence in the economic impact of this expansion: “This distribution model will not only drive efficiency in our business as we empower individuals and businesses to thrive but also contribute to the growth of our economy by facilitating essential financial services in underserved areas.”

The move comes at a time when agency banking is gaining significant traction in Kenya. According to the Central Bank of Kenya’s Annual Report for 2022/23, as of June 2023, 21 commercial banks and three microfinance banks were actively engaged in agency banking, with 85,328 and 936 active agents respectively.

The report also noted a substantial increase in agency banking transactions, rising from 1.1 billion in June 2022 to 1.3 billion in June 2023. During the same period, the value of these transactions grew from Kes 9.0 trillion to Kes 10.8 trillion, underscoring the growing popularity of agency banking services in Kenya.

For rural residents, this expansion could significantly reduce the time and cost associated with accessing banking services. Instead of traveling long distances to reach bank branches, they will soon be able to conduct essential financial transactions within their local communities.

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