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Banks defy digital trend with sustained expansion
I&M Bank Ltd Personal and business banking General Manager Shameer Patel during the ‘Ni Sare Kabisa’ 3.0 Campaign Launch event at Stanley Hotel, Nairobi on April 8, 2024.
Top banks have sustained the opening of new branches in the race to win new customers in emerging towns, defying the widespread shift toward digital banking.
Banks such as Equity Group, Co-operative Bank of Kenya, NCBA, DTB, I&M, Absa Bank Kenya, Kingdom Bank and Family Bank are betting on physical presence to win retail and business customers, even as mobile apps and internet platforms dominate day-to-day transactions in the country’s financial sector.
The flurry of branch openings by both large and mid-tier banks this year means the banking sector is sustaining the focus on brick-and-mortar model, having added 62 locations last year.
The lenders are using the physical branches in counties with growing commercial activity and improved infrastructure.
Central Bank of Kenya data shows mobile and internet banking transactions account for over 85 percent of total retail volumes. However, physical branches remain key for high-value transactions, customer verification and credit consultations, particularly in rural and semi-urban areas.
Branches still serve as trust anchors, with many customers still demanding to physically see the bank before they deposit or borrow. This has seen banks opt for co-existence between digital innovation and brick-and-mortar banking.
Co-op Bank on Wednesday last week opened a new branch at Laare in Meru. The Laare branch came barely two weeks after its subsidiary, Kingdom Bank, opened a branch in Bungoma town with eyes on the county’s agricultural, trade and hospitality sectors.
Co-op’s new branches add to the 16 that the lender opened last year when it crossed the 200 mark. Its move was in line with that of I&M Bank which in March this year opened three new branches —Mtwapa in Kilifi and Kawangware and ABC Mall in Nairobi.
I&M said in March it was targeting to add at least nine branches this year, mainly in the Central region (Kenol, Meru and Embu) and the larger Western Kenya region (Bungoma, Kakamega and Kericho).
In September, I&M opened new branches in Kapsabet and Nyali, raising its network to 65 outlets across 24 counties. In the previous year, it added at least eight, staying on its target to hit 100 by the end of next year.
Shameer Patel, director of retail business banking at I&M Bank Kenya said while digital is transforming how people transact, continued opening of physical branches demonstrates “being where our customers need us most.”
Equity Bank Kenya opened four new branches in July this year —in Bungoma, Kajiado, Mombasa and Kitui counties— joining other lenders in establishing their footprint in growth corridors. The lender’s new branches are targeting economic activities such as farming and fishing.
“These new branches represent our strategic intent to not only expand our physical footprint but to also ensure tailored financial solutions and expert advice,” said Equity Bank Kenya Managing Director- Moses Nyabanda, during the launch.
Meanwhile, Absa Bank Kenya opened its 87th branch in Kawangware in July, citing strong demand for personal and SME banking in high-density areas.
Smaller and mid-tier lenders are also joining the trend. Family Bank opened a new branch in Kilifi in June 2025, with eyes on small businesses. The bank’s CEO Nancy Njau said the move is all about “establishing a deeper connection” with customers.
Similarly, Dubai Islamic Bank Kenya also launched a branch in South C, Nairobi, to serve the growing demand for Sharia-compliant products.
The renewed interest in physical branches reflects a blended strategy of combining the convenience of digital platforms with the relationship-driven nature of traditional banking.
